The Nigerian Extractive Industries Transparency Initiative (NEITI) indicated that Nigeria’s solid minerals sector contributed N1.137 trillion to federal, state, and municipal governments between 2007 and 2023.
NEITI revealed this during the presentation of the 2023 Solid Minerals Audit Report in Abuja, which marks the sector’s 16th audit cycle.
The report was delivered by NEITI’s Executive Secretary, who stressed the organization’s importance in tracking the contributions of the solid minerals sector to Nigeria’s revenues.
He stated that the report’s conclusions demonstrate consistent growth and provide areas for reform to improve economic diversification.
“This research is critical for understanding the economic impact of Nigeria’s solid minerals sector. The sector’s revenue has increased 44-fold from N7.59 billion in 2007 to N341.27 billion in 2022, according to the Executive Secretary of NEITI.
The complete audit report prepared by Haruna Yahaya & Co. contains information about the sector’s economic impact, revenue streams, and export data.
Sector growth
The study shows a sustained growing trend in the sector’s revenue generating, with government receipts exceeding ₦1 trillion in total contributions.
In 2022 alone, the solid minerals sector generated N345.41 billion, with a reconciled final revenue of N329.92 billion. According to NEITI, this growth demonstrates the sector’s transformation into a significant contributor to Nigeria’s economy.
“Company payments analysis indicates that government revenue, including reconciled and unilaterally disclosed figures, reached N401.87 billion in 2023,” according to the report.
This figure included key revenue streams such as VAT (N128.32 billion), taxes collected by the Federal Inland Revenue Service (N370.09 billion), Education Tax (38.64%), Company Income Tax (10.64%), and royalties totaling N9.06 billion.
The audit report also included production and export data, which revealed that Nigeria produced 95.07 million tonnes of minerals in 2023. 4.32 million metric tonnes were exported, for a total value of N117.29 billion.
The top mineral-producing states were identified as Ogun, Kogi, and Rivers, with Ogun having the highest output volume. Meanwhile, Osun, Ogun, and Kogi states provided revenue to the industry.
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NEITI demonstrated transparency by reconciling inconsistencies in corporate payments of ₦301.6 billion, which were eventually lowered to ₦100 million. “The reconciliation down from ₦301.6 billion to ₦100 million reflects NEITI’s dedication to promoting transparency and accountability in the solid minerals sector,” it explained.
Contribution to GDP
In terms of Gross Domestic Product (GDP), the NEITI report revealed that the solid minerals industry accounted for 0.83% of Nigeria’s GDP in 2022, falling slightly to 0.75% in 2023.
This little contribution, as emphasized by NEITI, demonstrates untapped potential that might propel Nigeria’s economic diversification plan.
The research recommends for policy reforms that will allow the industry to operate at full capacity, noting its potential for greater economic impact.
It added: “The solid minerals sector holds untapped potential that, with effective policies, could play a pivotal role in Nigeria’s economic diversification.”
The paper emphasizes the necessity of policy initiatives and sector changes in allowing the solid minerals industry to make a greater contribution to Nigeria’s economy.
