The Minister of Solid Minerals Development, Mr. Dele Alake, has expressed the Federal Government’s willingness to incentivise revenue generation in the extractive sector.
Alake spoke on Wednesday at the launch of the 2022/23 Solid Minerals Industry Report by the Nigeria Extractive Industries Transparency Initiative (NEITI) in Abuja.
He said, “Through our close collaboration with NEITI, we are implementing strategies to incentivise revenue generation, reduce leakages, and optimise the revenue accruable to the government through the use of credible data from NEITI independent reports.
“Together with NEITI, we are working to ensure that every mineral extracted is properly accounted for and that the revenues generated contribute directly to national development,” he said.
He noted that the insights provided by the 2022/23 Solid Minerals Industry Report would play an important role in refining the government’s policies and approaches, enabling it to make data-driven decisions that positively impact the economy.
“We are committed to creating a transparent system where revenues from the solid minerals sector are used for the benefit of all Nigerians,” the minister added.
Represented by the Director General of the Solid Minerals Development Fund, Hajiya Fatima Shinkafi, he said the Ministry of Solid Minerals Development is at the forefront of championing policies and reforms to ensure that the sector becomes a strong pillar of Nigeria’s economy, contributing to job creation, sustainable development, and resilience.
Alake said, the Ministry has strengthened its monitoring and compliance mechanisms, ensuring that industry players adhere to national standards, environmental regulations, and best practices.
“We are also intensifying efforts to address challenges within artisanal and small-scale mining, working to formalise their activities so that they contribute effectively to the economy while respecting environmental and social standards,” he said.
The Minister said that as the world moves toward cleaner and more sustainable energy sources, Nigeria cannot afford to lag, adding that the solid minerals sector is crucial in the energy transition.
He said, minerals such as lithium, cobalt, and nickel, which are critical for renewable energy technologies, position Nigeria as a potential key player in the global energy landscape.
“Our policies are designed to support this transition by promoting investments in these strategic minerals, positioning Nigeria as a supplier for the global renewable energy market.
“This approach aligns with our commitment to sustainable development and helps to future-proof the Nigerian economy.
“We are also exploring partnerships to foster local expertise and technology transfer so that our workforce is prepared for the opportunities of a greener economy,” Alake said.
He thanked NEITI and its Executive Secretary, Dr. Orji Ogbonnaya Orji, for the outstanding commitment to the report, which continues to serve as an invaluable resource for the government, industry, civil society, and the public.
Also speaking, the National Coordinator of EITI in Nigeria and Executive Secretary of NEITI, Dr. Orji said, “The 2023 report underscores the sector’s evolution into a vital revenue contributor for Nigeria, with cumulative contributions now exceeding ₦1 trillion,” 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.
