The NEITI report reveals that Nigeria’s mining sector remitted N1.14 trillion to the federation account from 2019 to 2023, contributing significantly to the economy. However, 1,619 companies owe N680.3 million in unpaid fees. Revenue has grown 261% over the five years, signalling a positive outlook for the sector despite ongoing challenges.
According to the Nigerian Extractive Industries Transparency Initiative (NEITI), the mining sector has contributed approximately N1.14 trillion to the federation account from 2019 to 2023. This revenue is evenly distributed across federal, state, and local governments, showcasing the sector’s increasing significance to Nigeria’s GDP. Despite these contributions, 1,619 companies owe the government N680.3 million in unpaid fees and royalties. The findings come from NEITI’s latest Solid Minerals Industry report themed “Unleashing potentials of the solid mineral sector: Assessing the implementation of the Nigeria Mining Road Map.” NEITI’s audits have promoted transparency and led to meaningful reforms in revenue collection. NEITI Executive Secretary, Dr. Ogbonnaya Orji, highlighted the solid mineral sector’s growth potential and the importance of reconciling discrepancies between government revenues and company payments. The report indicates a significant revenue increase from N79.96 billion in 2019 to N401.87 billion in 2023, marking a 261% growth. Ogun, Kogi, and Rivers states were identified as leading mineral producers, with Ogun contributing N966.83 billion in royalties alone. Dr. Orji noted the necessity for better infrastructure, regulatory frameworks, and environmental management to tap into the sector’s potential. He has urged enhanced cooperation among government bodies, companies, and local communities. Additionally, production data revealed 95.07 million tonnes of minerals were produced in 2023, with exports worth N117.29 billion. The Minister of Solid Minerals Development emphasised the need for diversified economic strategies to reduce dependency on oil and gas, advocating for reforms to improve the business environment in the mining sector. The report concludes by noting that addressing challenges such as insecurity is crucial for the sector’s growth.
The NEITI report highlights the mining sector’s revenue contributions to Nigeria’s economy over the past five years amidst ongoing challenges. It underscores the importance of government collaboration with the mining industry to enhance transparency and drive economic diversification through responsible mineral exploitation.
In summary, the NEITI report outlines a positive trajectory for Nigeria’s mining sector, with substantial revenue contributions and potential for further growth. However, challenges such as unpaid royalties, regulatory inefficiencies, and security concerns must be addressed to fully realise the sector’s capabilities for economic development.
Original Source: economicconfidential.com