The Nigerian Extractive Industries Transparency Initiative (NEITI) has said that the extractive and mining sector remitted N1.14tn as revenue to the Nigerian government through the federation account between 2019 and 2023.
NEITI said in its 2022/23 Solid Minerals Industry report, themed, “Unleashing potentials of the solid mineral sector: Assessing the implementation of the Nigeria Mining Road Mapâ€, that this substantial amount was subsequently distributed equally among the three levels of government—federal, state, and local—highlighting the sector’s growing contribution to the nation’s gross domestic product.
It noted, however, that 1,619 companies currently owe the Nigerian government N680.3m in unpaid fees and royalties.
NEITI’s audit reports have consistently provided valuable insights into the extractive industries, leading to significant reforms and improved revenue collection.
In his remarks on the report, the NEITI Executive Secretary, Dr Ogbonnaya Orji, noted that the solid mineral sector has the potential to expand and contribute significantly to Nigeria’s economy.
Orji emphasised the need to address discrepancies between government revenues and company payments.
According to the report by Punch newspaper, Orji shared the progress made working with the NEITI Companies Forum and key government entities, reinforcing the agency’s collaboration with companies and civil society within the extractive industries.
“The 2023 report underscores the sector’s evolution into a vital revenue contributor for Nigeria, with cumulative contributions now exceeding N1tn,†Orji stated, emphasising the potential for further growth as regulatory compliance and reporting continue to improve.
“The solid mineral sector’s growth prospects are promising, with Nigeria’s rich mineral resources offering opportunities for economic development.
“However, challenges persist, including inadequate infrastructure, regulatory frameworks, and environmental concerns,†he added.
To address these challenges, Orji called for strengthened collaboration between government agencies, companies, and communities.
GIK/APA