Solid Minerals Revenue Grows To N1.137trn

The federal government realised a total of N1.137 trillion as revenue from the solid minerals sector between 2007 and 2022.

This was contained in the 2023 Solid Minerals Audit Report, released by the Nigerian Extractive Industries Transparency Initiative (NEITI) in Abuja, on Wednesday.

The agency also reiterated its commitment to achieving an outstanding validation outcome by January 2026.

NEITI executive secretary, Orji Ogbonnaya Orji, made this known in a statement on the presentation of the releases of the 2022-2023 Solid Minerals Sector Report in Abuja.

He said 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 N1.137 trillion (about $3.86 billion) in direct payments was made to various government levels.”

Orji said the report shows a substantial increase in government receipts from N7.59 billion in 2007 to N341.27 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 N1 trillion,” Orji said, emphasising the potential for further growth as regulatory compliance and reporting continue to improve.

Conducted by indigenous firm Haruna Yahaya and Co., the 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 N345.41 billion, with a reconciled final revenue of N329.92 billion.

Company payments analysis indicated that total government revenue, including reconciled and unilaterally disclosed figures, reached N401.87 billion in 2023.

Key revenue streams included VAT (N128.32 billion), FIRS taxes (N370.09 billion), Education Tax (38.64 per cent), Company Income Tax (10.64 per cent), and royalties (N9.06 billion).

Discrepancies initially amounted to N301.6 billion but were reconciled down to N100 million, demonstrating NEITI’s transparency commitment.

Minister of Solid Minerals Development, Dele Alake, at the public presentation noted that the Ministry will prioritise the report’s data to empower non-state actors and facilitate evidence-based engagement for government and company accountability.

He emphasised closer partnership with NEITI on ongoing reforms.

The auditor general pledged 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.

Meanwhile, presenting the Progress Report on its Extractive Industries Transparency Initiatives (EITI) Implementation in Nigeria in Abuja on Tuesday, Dr. Orji Ogbonnaya Orji who is also the national coordinator of EITI in Nigeria 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 needing corrective action, 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 is now stable, strengthened, and fully prepared to execute its 2024 work plan aligned with NEITI’s 5-year strategic plan.