A report by the Extractive Industries Transparency Initiative, NEITI, has shown the low contribution of the nation’s solid minerals sector of 0.08 per cent to Gross Domestic Product, GDP. This was made known by the Executive Secretary and Chief Executive Officer, CEO, NEITI, Dr Orji Ogbonnaya Orji, while presenting the ‘NEITI House Dialogue on the status of EITI Implementation in Nigeria, Highlights of the 2022-2023 Solid Minerals Report’ on the Public Presentation of the NEITI 2022-2023 Solid Minerals Reports, in Abuja. Orji pointed out in course of doing their job it were discrepancies between the information received from government and the companies. He said: “Our report showed there are variances. For summary, in 2022, the first year of government, the solid mineral sector generated N345.41 billion.
“It has potential that can provide Nigeria with alternative revenue. It is likely not receiving the required attention. So, revenue generated from the sector N345.41 billion, and this is an increase from what was generated in 2021. The consultation process revealed a substantial emotion in discrepancies between government revenues and company payments. The initial discrepancy was N301.6 billion that could be accounted for. We went further and narrowed this down because we challenged those who were dealing with the provided further evidence and narrowed it down to an astounding N100 million. The impact of the solid mineral sector to our GDP is still very minimal. It contributed only N1.66 trillion to Nigeria’s GDP, which is 0.8 per cent of the total GDP of our country of N202.36 trillion in 2022. The highlights of this report is that we are sitting on the gold and we have left it and focused on oil and gas.
“In 2023, the total revenue, including what we consider unilaterally disclosed, reached 401.87 billion, excluding unilaterally disclosed oversight revenues, which amounts to N382.51 billion. In company payment, the total payment made by companies matched with revenue stood at about 401.87 billion. Now, production and export in 2023, Nigerian solid minerals production reached a total of 95.7 tons, with loyalty paid at 9.01 billion. The sector contributed significant export quantity of N4.32 million metric tons, valued at 117.29. And economic impact, the solid mineral sector contributed only 0.75 per cent to the Central Bank of Nigeria’s official exchange rate, standing at 939, as for December 2023.” However, he said there is serious need for reforms and adequate attention for the sector. “The report underscores the need for enhanced oversight and reform and we make very strong recommendations.”
Meanwhile, the Minister of Solid Minerals Development, Dr Dele Alake who was represented by the Executive Secretary, Solid Minerals Development Fund, SMDF, Hajia Fatima Shinkafi, in his address assured of ongoing reforms to take the solid minerals sector to an enviable height based on the efforts put in by the Tinubu-led administration under the Renewed Hope Agenda.
“Today’s report launch is more than a presentation of data; it is a powerful statement of our determination on to build a future where Nigeria’s mineral resources drive economic diversification, generate sustainable revenue, and contribute meaningfully to national development. “The Ministry of Solid Minerals Development is at the forefront of championing policies and reforms to ensure that this sector becomes a strong pillar of Nigeria’s economy, contributing to job creation, sustainable development, and resilience”, he said.
In a goodwill message, the National President, Miners Association of Nigeria, MAN, ‘Dele Ayanleke, said, “Therefore, what remains for us as a nation is the strategic exploitation of these endowments and judicious management of the accruing social and economic benefits. It is imperative to state, however, that the nation has to get more committed to confront the various challenges inhibiting the growth of the sector and preventing it from fulfilling its natural mandate.
“Among these challenges is insecurity which has yielded the mining space to both local and foreign possessors of lethal weapons. So, the issue of security has to be treated as a national emergency. Also, the human, logistic and infrastructural capacities of the regulatory agency have to be tremendously improved upon if the reigning regime of illegality and opacity in the sector is to be dismantled. The recent commendable initiative of the launching of Mining Marshall by the Ministry of Solid Minerals Development, under Dr Dele Alake, is a tip of the iceberg. The focus of capacity improvement has to target the technical departments and agencies of the Ministry.”
