The Nigerian Extractive Industries Transparency Initiative (NEITI) is committed to achieving an outstanding validation outcome by January 2026, the Secretariat of the transparency-promoting agency has said.
Presenting the Progress Report on its Extractive Industries Transparency Initiatives (EITI) Implementation in Nigeria in Abuja on Tuesday, the National Coordinator of EITI in Nigeria and Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, explained that apart from actively addressing the gaps in the EITI implementation identified during the 2023 Validation Exercise, NEITI has been working closely with the government, extractive companies, civil society, and the media to achieve meaningful impacts beyond the stated issues, demonstrating its commitment to meeting national and global obligations.
Last January, a high-powered EITI Mission visited Nigeria to deliver the results of Nigeria’s 2023 Validation Exercise, assessing the country’s EITI implementation progress. The EITI Mission’s report awarded an overall high score of 72 points out of a possible 100, highlighting several areas of commendable performance as well as key areas requiring remedial actions.
The NEITI Executive Secretary outlined the primary areas requiring corrective actions, including the reconstitution of the National Stakeholders Working Group (NSWG), dissolved with other federal boards, strengthening civil society participation in the EITI process through open, transparent representation, and deepening NEITI’s engagement with extractive companies.
Dr. Orji expressed satisfaction that these issues have since been addressed under an approved corrective action plan, reaffirming Nigeria’s dedication to the EITI principles.
Speaking on behalf of the NSWG Chair, Amb. Mathew Adoli expressed optimism that with these corrective measures, the NEITI Secretariat was now stable, strengthened, and fully prepared to execute its 2024 work plan aligned with NEITI’s 5-year strategic plan.
Minister of Solid Minerals Development, Dele Alake, said at the public presentation that the Ministry would prioritize the report’s data to empower non-state actors and facilitate evidence-based engagement for government and company accountability.
Represented by the Director General of the Solid Minerals Development Fund, Alake emphasized closer partnership between the Ministry and NEITI to pursue ongoing reforms.
The Auditor General of the Federation pledged to ensure enhanced collaboration with NEITI for transparent public finance management, while Jonathan Gaza Gbefwi of the Solid Minerals Committee in the House of Representatives praised NEITI’s reports as critical legislative tools.
Apart from reconstituting the NEITI Board, Dr. Orji shared progress in working with the NEITI Companies Forum and key government entities, reinforcing NEITI’s collaboration with companies and civil society within the extractive industries. He noted that civil society participation was now better organized, with leadership elected transparently by the constituency.
On NEITI Industry Audit Reports, Dr. Orji announced that the public presentation of the 2022/2023 Solid Minerals Industry Report demonstrated that NEITI’s reporting was current and ready for stakeholder engagement.
At the NEITI House Dialogue’s second edition, he highlighted the establishment of the NEITI Data Centre, a centralized platform for extractive sector data, analysis, and training, which supports compliance with EITI’s Open Data policy and NEITI’s Systematic Disclosure Programme.
The 2023 Solid Minerals Audit Report, the 16th audit cycle, provides a comprehensive overview of the sector’s contributions from 2007 to 2023, during which ₦1.137 trillion (about $3.86 billion) in direct payments was made to various government levels.
The report showed a substantial increase in government receipts from ₦7.59 billion in 2007 to ₦341.27 billion in 2022, a 44-fold rise, indicating solid sector growth.
“The 2023 report underscores the sector’s evolution into a vital revenue contributor for Nigeria, with cumulative contributions now exceeding ₦1 trillion,” Orji stated, emphasizing the potential for further growth as regulatory compliance and reporting continue to improve.
Conducted by indigenous firm Haruna Yahaya and Co., the audit Report covered the solid minerals industry’s economic contributions, revenue streams, and exports, providing recommendations for sector reforms.
The report disclosed that in 2022, the sector generated ₦345.41 billion, with a reconciled final revenue of ₦329.92 billion.
Company payments analysis indicated that total government revenue, including reconciled and unilaterally disclosed figures, reached ₦401.87 billion in 2023.
Key revenue streams included VAT (₦128.32 billion), FIRS taxes (₦370.09 billion), Education Tax (38.64%), Company Income Tax (10.64%), and royalties (₦9.06 billion).
Discrepancies initially amounted to ₦301.6 billion but were reconciled down to ₦100 million, demonstrating NEITI’s transparency commitment. Production and export data showed 95.07 million tonnes of minerals produced in 2023, with a significant export volume of 4.32 million metric tonnes, valued at ₦117.29 billion.
The report highlighted top mineral-producing states, including Ogun, Kogi, and Rivers, with Ogun leading production. Revenue contributions were led by Osun, Ogun, and Kogi states.
The report also identified the solid minerals sector’s GDP contribution at 0.83% in 2022, with incremental growth to 0.75% in 2023, underscoring untapped potential. It reiterated policy measures and reforms needed to unlock the sector’s capacity to contribute more significantly to Nigeria’s economic diversification.
