Business

NEITI: Solid minerals sector generated N1.137tn revenue in 7 years

The Nigerian Extractive Industries Transparency Initiative (NEITI) has disclosed that the solid minerals sector contributed N1.137 trillion in direct payments to various government levels from 2007 to 2023.

NEITI disclosed this while presenting the 2023 Solid Minerals Audit Report, which provided a comprehensive overview of the sector’s contributions from 2007 to 2023, in Abuja on Wednesday, October 30, 2024.

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 showed 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 report underscored the sector’s evolution into a vital revenue contributor for Nigeria, with cumulative contributions now exceeding N1 trillion.

It disclosed that in 2022, the solid minerals sector generated N345.41 billion, with a reconciled final revenue of N329.92 billion.

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

FG, States, LGs share N1.298trn September revenue

“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.”

The 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 N117.29 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 Gross Domestic Product (GDP) contribution at 0.83 per cent in 2022, with incremental growth to 0.75 per cent 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.

The Star

Segun Ojo

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