The Nigeria Extractive Industries Transparency Initiative (NEITI) unveiled its latest findings on Wednesday, revealing that Nigeria’s solid minerals sector contributed a mere 0.8% to the national Gross Domestic Product (GDP) in 2022. This report was presented by NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, during the public presentation of the 2022-2023 Solid Minerals Report in Abuja.
Dr. Orji highlighted significant discrepancies in the data provided by government agencies and mining companies. The solid minerals sector generated revenue of ₦345.41 billion in 2022, an increase from the previous year, but initial unaccounted discrepancies were recorded at ₦301.6 billion. After further investigation, this discrepancy was narrowed down to ₦100 million.
The report noted that Nigeria’s solid minerals production reached 95.7 tons in 2023, with ₦9.01 billion collected in royalties. Despite this, the overall economic impact of the sector remains limited. “We are sitting on a gold mine, yet the sector has not received adequate attention,” Dr. Orji stated.
Emphasizing the need for reforms, he called for improved oversight and compliance within the sector. Dr. Orji urged for increased government involvement to unlock the solid minerals industry’s potential for sustainable revenue and economic diversification.
Meanwhile, the Minister of Solid Minerals Development, Dr. Dele Alake, represented by Hajia Fatima Shinkafi, the Executive Secretary of the Solid Minerals Development Fund (SMDF), assured stakeholders of the Tinubu-led administration’s commitment to revitalizing the sector through the Renewed Hope Agenda. Alake expressed optimism regarding ongoing reforms designed to transform solid minerals into a major contributor to the nation’s economy.
In his goodwill message, the National President of the Miners Association of Nigeria (MAN), ‘Dele Ayanleke, stressed the importance of addressing challenges such as insecurity and limited regulatory capacity that have impeded the sector’s growth. He commended the recent “Mining Marshal” initiative by the Ministry as a positive step but emphasized the need for targeted investments in technical capacity to curb illegal mining activities.