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The Nigerian Extractive Industries Transparency Initiative report said that the extractive and mining sector remitted N1.14tn as income to the federation account between 2019 and 2023.
It mentioned this substantial quantity was subsequently distributed equally among the many three ranges of presidency—federal, state, and native—highlighting the sector’s rising contribution to the nation’s gross home product.
It famous, nonetheless, that 1,619 firms at the moment owe the federal government N680.3m in unpaid charges and royalties.
These particulars have been revealed within the 2022/23 newest Stable Minerals Trade report, themed, “Unleashing potentials of the strong mineral sector: Assessing the implementation of the Nigeria Mining Highway Map.”
NEITI’s audit reviews have constantly supplied beneficial insights into the extractive industries, resulting in important reforms and improved income assortment.
The NEITI Government Secretary, Dr Ogbonnaya Orji, famous that the strong mineral sector has the potential to develop and contribute considerably to Nigeria’s financial system.
Orji emphasised the necessity to tackle discrepancies between authorities revenues and firm funds.
He additional shared progress in working with the NEITI Firms Discussion board and key authorities entities, reinforcing the company’s collaboration with firms and civil society throughout the extractive industries.
“The 2023 report underscores the sector’s evolution into a significant income contributor for Nigeria, with cumulative contributions now exceeding N1tn,” Orji said, emphasising the potential for additional progress as regulatory compliance and reporting proceed to enhance.
He added, “The strong mineral sector’s progress prospects are promising, with Nigeria’s wealthy mineral assets providing alternatives for financial growth.”
“Nevertheless, challenges persist, together with insufficient infrastructure, regulatory frameworks, and environmental issues.”
To handle these challenges, Orji referred to as for strengthened collaboration between authorities companies, firms, and communities.
He mentioned the organisation’s efforts have yielded constructive outcomes, together with the event of a knowledge centre to consolidate scattered information and improve transparency.
He additional affirmed the secretariat’s dedication to reaching an impressive validation final result by January 2026.
An evaluation of the report obtained revealed financial actions from the sector have steadily elevated income remitted to the federation account, from N79.96bn in 2019 to N401.87bn in 2023.
It mentioned this determine represents a progress of N515.5bn or 261 per cent inside 5 years.
A breakdown of the income confirmed that N79.96bn was remitted in 2019, N128.17 in 2020, N193.59bn in 2021, N339.57bn in 2022, and 401.87 in 2023.
It additionally confirmed Ogun, Kogi, and Rivers states as leaders in mineral manufacturing, with Ogun producing 15.36 billion tonnes and contributing N966.83n in royalties.
The report learn, “Over the previous 5 years, there was a constant year-on-year improve in income to the Federation Account. The whole income accrued to the account throughout this era quantities to roughly N1.14tn. This represents a progress of N515.5bn or (261 per cent), transferring from N79.96bn in 2019 to N401.87bn in 2023.
“The combination of whole receipts by Federal, State, and Native Authorities companies amounted to N401.86bn, representing the quantity paid by all firms working within the strong mineral sector in 2023 towards N345.40bn in 2022. It signifies a 16 per cent improve in income assortment.
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“Throughout the 12 months below overview, there have been N16.68bn subnational transfers or distributions of funds from the strong minerals’ income account.
“Firm funds evaluation indicated that whole authorities income, together with reconciled and unilaterally disclosed figures, reached N401.87bn in 2023.
“Key income streams included VAT (N128.32bn), FIRS taxes (N370.09bn), Training Tax (38.64 per cent), Firm Revenue Tax (10.64 per cent), and royalties (N9.06bn).
“Discrepancies initially amounted to N301.6bn however have been reconciled all the way down to N100m, demonstrating NEITI’s transparency dedication.”
Persevering with, the report mentioned, “Manufacturing and export information confirmed 95.07 million tonnes of minerals produced in 2023, with a major export quantity of 4.32 million metric tonnes, valued at N117.29bn.”
The Minister of Stable Minerals Growth, Dr Dele Alake, represented by the Government Secretary of the Stable Minerals Growth Fund, Fatima Shinkafi, famous that the launch is greater than a presentation of information.
He defined that it’s a highly effective assertion of the federal government’s willpower to construct a future the place Nigeria’s mineral assets drive financial diversification, generate sustainable income, and contribute meaningfully to nationwide growth.
“Nigeria’s financial system has traditionally relied on oil and gasoline. Nevertheless, international financial shifts and Nigeria’s rising want for diversified income streams underscore the significance of creating our strong minerals sector,” he mentioned.
On financial diversification by way of coverage initiatives, Alake mentioned the Ministry has launched focused insurance policies which might be laying the groundwork for accelerated progress within the strong minerals sector.
“These initiatives are designed to draw each home and overseas investments, streamline the regulatory atmosphere, and create a secure, predictable framework for traders.”
He continued, “The Nationwide Mineral Assets Growth Coverage, for instance, offers a transparent path for sustainable mining practices, environmental safety, and useful resource optimization.”
“Now we have additionally undertaken reforms to enhance licensing processes and encourage accountable mining, aiming to create a business-friendly atmosphere that strengthens investor confidence and fuels financial progress.”
In the meantime, the Nationwide President of the Miners Affiliation of Nigeria, Dele Ayanleke, counseled NEITI’s administration and the auditors for gathering information that permits the nation to evaluate transparency and accountability within the extractive industries in step with globally accepted EITI requirements.
He emphasised that this commendation is particularly important contemplating the traditionally opaque regulatory and operational atmosphere in Nigeria’s strong minerals sector.
“As a participant within the Nigerian mining trade, whereas acknowledging the position of the oil and gasoline sector in our financial system, I can boldly say that the strong minerals sector holds the potential for wealth creation by way of large job alternatives for our youth and the event of cottage industries,” he said.
“Nature has generously distributed these mineral deposits throughout the 774 native governments of this nation.”
“Thus, what stays for us as a nation is the strategic exploitation of those endowments and the considered administration of the ensuing social and financial advantages.”
“It’s crucial, nonetheless, that the nation turns into extra dedicated to addressing the challenges inhibiting the expansion of the sector and stopping it from fulfilling its potential.”
“Amongst these challenges is insecurity, which has ceded the mining house to each native and overseas armed teams. Subsequently, addressing safety have to be handled as a nationwide emergency,” he added.
