BY AKUDORO GLORIA
The Nigerian Extractive Industries Transparency Initiative (NEITI) has said that Nigeria’s solid minerals sector generated a total of N1.137 trillion to federal, state, and local governments from 2007 to 2023.
It emphasized its role in tracking the solid minerals sector’s contributions to Nigeria’s revenue.
NEITI’s Executive Secretary, Dr. Ogbonnaya Orji stated this during the presentation of its 2023 Solid Minerals Audit Report in Abuja, marking the 16th audit cycle for the sector.
He said: “The report is pivotal in understanding the economic footprint of Nigeria’s solid minerals sector. From N7.59 billion in 2007, the sector has shown a remarkable 44-fold revenue increase, reaching N341.27 billion in 2002.”
The report findings, according to NEITI Boss, reflects steady growth and highlighted areas for reform to bolster economic diversification.
The report also showed a consistent upward trend in the sector’s revenue generation, showing substantial government receipts growth which has now surpassed N1 trillion in cumulative contributions.
A breakdown showed that in 2002, the solid minerals sector generated N345.41b, with a reconciled final revenue of N329.92b. NEITI explained that this growth underscores the sector’s evolution into a key contributor to Nigeria’s economy, while in 2003, government revenue including reconciled and unilaterally disclosed figures reached N401.87 billion.
Key revenue streams within this total included 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 amounting to N9.06 billion.
The audit report also covered production and export data, revealing that Nigeria produced 95.07 million tonnes of minerals in 2023. Of this, 4.32 million metric tonnes were exported, with a total export value of N117.29 billion.
Top mineral-producing states were identified as Ogun, Kogi, and Rivers, with Ogun taking the lead in production volume. Meanwhile, Osun, Ogun, and Kogi states contributed revenue to the sector.
NEITI emphasized its commitment to transparency through the reconciliation process, which resolved discrepancies in company payments initially totaling N301.6 billion, later reduced to N100 million.
“The reconciliation down from N301.6 billion to N100 million reflects NEITI’S dedication to promoting transparency and accountability in the solid minerals sector,” NEITI explained.
