The extractive and mining sector remitted ₦1.14 trillion to Nigeria’s federation account from 2019 to 2023, as reported by NEITI. Despite this growth, there are significant unpaid fees owed by companies. Revenue showed a notable increase, with contributions from key states, indicating potential for further exploration and development within the industry.
The Nigerian Extractive Industries Transparency Initiative (NEITI) has reported that the extractive and mining sector contributed ₦1.14 trillion to the federation account from 2019 to 2023, marking a significant rise in the sector’s role in the national economy. This revenue was shared equally among federal, state, and local governments. Despite this growth, 1,619 companies owe ₦680.3 million in unpaid fees and royalties. The report, part of the 2022/23 Solid Minerals Industry audit, highlights the sector’s potential for further expansion and underscores the importance of addressing the discrepancies between government earnings and corporate payments. NEITI’s Executive Secretary, Dr Ogbonnaya Orji, pointed out that the sector could drive economic development despite challenges like inadequate infrastructure and security issues. The revenue increased steadily over the years, from ₦79.96 billion in 2019 to ₦401.87 billion in 2023, with significant contributions from Ogun, Kogi, and Rivers states. These findings stress the need for stronger collaboration among stakeholders to optimise Nigeria’s mineral resources.
The NEITI report showcases the financial contributions of Nigeria’s mining and extractive sector, reflecting its vital role in national revenue generation. The data spans a 5-year period, illustrating a significant increase in remitted funds, while also shedding light on the challenges faced, such as non-compliance from companies and infrastructure deficits. The report aims to promote transparency and accountability within the sector and highlights ongoing efforts to reform regulatory frameworks and attract investments for sustainable development.
The substantial contributions of the mining sector to Nigeria’s economy demonstrate its potential for growth and wealth creation. With remittances steadily increasing, there is a clear opportunity for enhanced revenue collection through improved compliance and collaboration. Addressing the sector’s challenges, particularly security and regulatory hurdles, is crucial for it to fulfil its economic potential.
Original Source: punchng.com