The mining sector can play a transformative role in boosting Nigeria’s revenue base and contribute more to the country’s gross domestic product (GDP) if some critical steps are taken to harness its capacity, the Nigerian Extractive Industries Transparency Initiative (NEITI) said.
Apart from comprehensive reforms to address huge gaps in the 2007 Solid Minerals Act hindering the effective operations of the sector, there is also a need to strengthen regulatory frameworks and inter-agency collaboration to grow the capacity of the sector to reduce unemployment and attract foreign direct investment.
Also, there is a need to prioritise the enhancement of data transparency for informed decision-making; encouragement of private sector participation through targeted reforms, and investments in infrastructure and local capacity development.
The Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji, stated this in a goodwill message he delivered at the opening session of Nigeria Mining Week on Tuesday in Abuja.
Orji who said the executive bill for the reforms in the Solid minerals sector was already before the National Assembly, said these critical steps proffered as recommendations in the latest 2023 NEITI Solid Minerals Audit Report provide a clear roadmap for action to revamp the sector.
Findings from the Report, he noted, underscored the sector’s potential and its incremental progress if the steps were given priority attention.
He said over the 16 audit cycles spanning 2007 to 2023 showed that the solid minerals sector contributed a cumulative revenues of about ₦1.137 trillion (approximately $3.86 billion) in direct payments to the government.
Government receipts, he pointed out, rose from ₦7.59 billion in 2007 to ₦345.40 billion in 2022 and ₦401.87billion in 2023, indicating a 46-fold rise in the sector growth.
Specifically, Orji said the solid minerals sector production in 2023 reached an impressive 95.07 million tonnes, generating ₦9.01 billion in royalties, while export volumes also rose to 4.32 million metric tonnes, valued at ₦117.29 billion.
Despite these achievements, the NEITI Executive Secretary said the sector’s contribution to the country’s gross domestic product (GDP) remained modest, accounting for ₦1.66 trillion, or 0.83% of Nigeria’s GDP of ₦202.36 trillion in 2022.
The figure, he said, improved slightly in 2023 to ₦1.76 trillion, or 0.75%, reflecting untapped opportunities that, if effectively harnessed, could transform the sector into a cornerstone of Nigeria’s economic diversification strategy.
The theme of the event—“Building the Mining Sector to Become a Cornerstone of Nigeria’s Economy”, Orji noted, resonated with NEITI’s mission to ensure transparency, accountability, and good governance in Nigeria’s extractive industries.
He said as the nation seeks to diversify its economy, the mining sector stands out as a vital driver of sustainable development, job creation, and inclusive growth.
“NEITI remains committed to leveraging the EITI framework to foster transparency, curb illicit financial flows, and promote sustainable resource management,” Orji said.
Underlining the importance of cooperation and partnership among key stakeholders in the sector, Orji said translating the sector potential into progress required a united effort from the government, industry leaders, civil society, and development partners.
“Together, we must prioritise infrastructure development, foster innovation, and create an enabling environment for investment. Through collaboration, we can build a mining sector that not only contributes significantly to national revenue, but also positions Nigeria as a leader on the global mining map,” he said.
