Between 2019 and 2023, Nigeria’s extractive and mining sector contributed **N1.14 trillion** to the federation account according to NEITI. While revenue grew by **261%**, challenges like unpaid fees by **1,619 companies** and inadequate infrastructure persist. Key states contributing include Ogun, Kogi, and Rivers. NEITI aims to enhance transparency and compliance in the sector, emphasising the need for economic diversification.
The extractive and mining sector in Nigeria contributed a significant N1.14 trillion to the federation account from 2019 to 2023, as highlighted in a report by the Nigerian Extractive Industries Transparency Initiative (NEITI). This amount is equally distributed among federal, state, and local governments, marking a notable increase in the sector’s role in the nation’s GDP. Despite this progress, 1,619 companies owe the government N680.3 million in unpaid fees and royalties. The recently released 2022/23 Solid Minerals Industry report underscores the need for improved compliance and revenue collection, aiming to leverage the solid mineral sector’s potential to enhance Nigeria’s economy. Dr. Ogbonnaya Orji, NEITI’s Executive Secretary, stresses the importance of resolving discrepancies between government revenues and company payments. The report shows a 261% growth in revenue remitted over five years, rising from N79.96 billion in 2019 to N401.87 billion in 2023. Key mineral-producing states include Ogun, Kogi, and Rivers, with Ogun contributing N966.83 billion in royalties. NEITI aims to consolidate data to foster transparency in the sector. Moreover, the Minister of Solid Minerals Development, Dr. Dele Alake, emphasised the government’s commitment to using mineral resources for economic diversification. However, challenges such as inadequate infrastructure and insecurity hinder progress. The National President of the Miners Association of Nigeria echoing these sentiments, highlighted the sector’s vast potential for job creation and economic growth, urging for strategic utilisation of resources amidst ongoing security concerns.
The contribution of the extractive and mining sector is vital for Nigeria’s economic growth, providing substantial revenue to the federation account. NEITI’s reports aim to improve transparency in the sector, ensuring that companies comply with financial obligations to the government. The report highlights both achievements in remitting revenue and challenges that need addressing, such as unpaid fees and infrastructure issues. Agricultural and financial metrics underscore the sector’s evolving role in supporting national development and fostering economic diversification away from oil dependency.
The mining sector has shown remarkable growth, significantly increasing its revenue contribution to Nigeria’s federation account. With cumulative remittances exceeding **N1 trillion**, the sector is poised for further development provided that unresolved issues such as unpaid royalties and infrastructure deficits are addressed. Enhanced collaboration among stakeholders and improved regulatory frameworks are essential to fully exploit Nigeria’s mineral wealth and strike a balance between economic growth and environmental protection.
Original Source: punchng.com