The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for collaborative efforts to boost the solid minerals sector’s contribution to the Gross Domestic Product (GDP) of the country. Nigeria is blessed with over 40 solid minerals in commercially viable quantities, presenting significant potential for sectoral growth.
During the 2024 Multi-stakeholder Roundtable in Abuja, Dr. Orji Ogbonnaya Orji, the Executive Secretary of NEITI, made this call. The event, convened by Global Rights in partnership with the Ministry of Solid Minerals and NEITI, revolved around the theme “Enhancing Inclusiveness – An Imperative for Promoting Transparency, Accountability, and Development in Nigeria’s Extractive Industry.”
Dr. Orji highlighted the current state of the solid minerals sector, revealing that it contributes less than one percent to the country’s GDP. Despite improvements in NEITI’s audit reports, the sector continues to underperform.
He underscored, “The contribution of the solid minerals sector to our GDP is still far less than one percent, 0.63 percent as at 2021. So over these years, solid minerals do not contribute up to one percent of our GDP. This has remained embarrassing given the enormous potential we have in the sector.”
Furthermore, Dr. Orji expressed concern about the low participation of women in the industry and stressed the necessity for new standards emphasizing fiscal justice and gender inclusion in decision-making processes. He also called for public disclosure of data to address the social, economic, cultural, and environmental challenges faced by women and children in oil, gas, and mining host communities and environments.
Additionally, the Executive Director of Global Rights, Abiodun Baiyewu, brought attention to the fact that 80 percent of the sector, particularly artisanal mining, lacks regulation. She also highlighted the environmental and socio-economic consequences of inadequate oversight, pointing out that mining host communities bear the burden of the resource curse without reaping the benefits of the minerals harnessed from their vicinity.
The concerns raised by NEITI and Global Rights underline the urgent need for collaborative efforts to revitalize Nigeria’s mining sector and ensure its sustainable development. It is imperative for all stakeholders, including the government, private sector, and civil society, to work together towards addressing these challenges and unlocking the full potential of the country’s abundant solid minerals.
As Nigeria continues its efforts to diversify the economy and reduce its dependence on oil, the mining sector presents an opportunity for growth and economic development. With the right policies, regulations, and investments, the sector has the potential to significantly contribute to the country’s GDP and create employment opportunities, while also fostering inclusive and sustainable development.
In conclusion, fostering collaboration and inclusivity in the mining sector is crucial for promoting transparency, accountability, and equitable development. By addressing the challenges facing the industry and prioritising the participation of all stakeholders, Nigeria can harness the wealth of its solid minerals for the benefit of the nation as a whole.