Enhancing Transparency in Nigeria’s Mining Sector

In an endeavour to promote transparency and accountability in Nigeria’s solid minerals sector, the Nigeria Extractive Industries Transparency Initiative (NEITI) has underscored the necessity for a closer collaboration with mining companies across the country. The objective is not only to enhance governance but also to augment government revenue from the sector.

During a recent visit to the NEITI House in Abuja by a delegation from the Miners Association of Nigeria, led by its President, the Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, underscored the government’s escalating focus on the mining industry. NEITI’s 2021 Solid Minerals Industry Report disclosed a 52 per cent surge in government revenue from the industry, totalling N177.44 billion, up from N116.82 billion in 2020.

Dr. Orji reiterated the significance of the partnership with mining companies, asserting that NEITI is dedicated to deepening its engagement with these companies, particularly in light of the federal government’s attention to the solid minerals sector. He further accentuated the pivotal role played by mining companies in shaping the scope of engagement with the solid mineral industry, revenue generation, government take, and overall industry investments.

Furthermore, Dr. Orji highlighted NEITI’s role in attracting national and international attention to best practices in transparency and accountability within the industry, aiming to ensure profitability for companies in an accountable manner while also providing government revenues to support national development projects.

Moreover, he underscored the importance of creating an enabling environment for businesses to thrive, as this would ultimately benefit host communities, states, the country, and the companies operating within the sector. Dr. Orji stressed the significance of transparency and accountability for the mutual benefit of all stakeholders, while also acknowledging the potential for violence and conflict in the absence of a fair and accountable industry.

Conversely, Mr. Dele Ayanleke, the President of the Miners Association of Nigeria, praised NEITI for its consistent efforts in ensuring transparency and accountability in the extractive industry. He highlighted NEITI’s independent auditing and reporting on the solid minerals sector as beneficial to members of his Association, substantially contributing to the sector’s revenue generation potential.

Ayanleke further raised concerns regarding the interference of some State Governments, which has impeded the growth of the sector. He sought NEITI’s support in advocating for stronger compliance from subnational entities with the legal and regulatory frameworks governing the solid minerals sector.

In conclusion, NEITI’s call for enhanced transparency and accountability in Nigeria’s mining sector underscores the importance of a collaborative approach between the government, NEITI, and mining companies. Such partnerships are crucial in ensuring sustainable growth, responsible business practices, and increased government revenue, ultimately benefiting all stakeholders involved.