The Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed that the Federal Government generated the sum of N345.41 billion from the solid minerals sector in 2022.
NEITI revealed this in its 2022-2023 Solid Minerals Sector Audit Report released on Wednesday in Abuja.
The agency disclosed that out of the amount generated, it was able to reconcile a final revenue of N329.92 billion.
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 ₦1.137 trillion (about $3.86 billion) in direct payments was made to various government levels.
The report shows a substantial increase in government receipts from ₦7.59 billion in 2007 to ₦341.27 billion in 2022, a 44-fold rise, indicating solid sector growth.
Company payments analysis indicated that total government revenue, including reconciled and unilaterally disclosed figures, reached ₦401.87 billion in 2023, pointing at key revenue streams to include VAT (₦128.32 billion), FIRS taxes (₦370.09 billion), Education Tax (38.64%), Company Income Tax (10.64%), and royalties (₦9.06 billion).
It noted that discrepancies initially amounted to ₦301.6 billion but were reconciled down to ₦100 million, demonstrating NEITI’s transparency commitment. 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 ₦117.29 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 GDP contribution at 0.83% in 2022, with incremental growth to 0.75% 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.
Commenting on the report, the Minister of Solid Minerals Development, Dele Alake, noted that the Ministry will prioritize the report’s data to empower non-state actors and facilitate evidence-based engagement for government and company accountability.
Represented by the Director General of the Solid Minerals Development Fund, Hajiya Fatima Shinkafi, he emphasized closer partnership with NEITI on ongoing reforms.
Also speaking, the Auditor General for the Federation, Shaakaa Kanyitor Chira 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.
On his part, the National Coordinator of EITI in Nigeria and Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, said, “The 2023 report underscores the sector’s evolution into a vital revenue contributor for Nigeria, with cumulative contributions now exceeding ₦1 trillion,” Orji stated, emphasizing 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.
