NEITI Report Reveals 0.8% GDP Contribution From Solid Minerals
The Nigeria Extractive Industries Transparency Initiative (NEITI) presented its latest findings on Wednesday, revealing that Nigeria’s solid minerals sector contributed a mere 0.8% to the national Gross Domestic Product (GDP) in 2022.
This was detailed by NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, during the public presentation of the 2022-2023 Solid Minerals Report in Abuja.
IDr. Orji noted discrepancies in the data provided by both government agencies and mining companies.
For example, while the sector generated revenue of ₦345.41 billion in 2022—a rise from the previous year—there were initial unaccounted discrepancies amounting to ₦301.6 billion. After further investigation, this discrepancy was narrowed down to ₦100 million.
Orji also highlighted the sector’s export and economic impact in 2023, noting that Nigeria’s solid minerals production totaled 95.7 tons, with ₦9.01 billion collected in royalties.
He pointed out that, while the sector contributed 0.8% to the GDP in 2022, its overall economic impact remains limited. “We are sitting on a gold mine, yet the sector has not received adequate attention,” he said.
The report emphasized the need for reforms to strengthen oversight and compliance in the sector. Dr. Orji called for more government involvement to unlock the solid minerals industry’s potential for sustainable revenue and economic diversification.
Meanwhile, the Minister of Solid Minerals Development, Dr. Dele Alake, represented by the Executive Secretary of the Solid Minerals Development Fund (SMDF), Hajia Fatima Shinkafi, assured stakeholders that the Tinubu-led administration is committed to revitalizing the sector through the Renewed Hope Agenda. Alake expressed optimism about ongoing reforms aimed at transforming solid minerals into a major contributor to the nation’s economy.
In his goodwill message, the National President of the Miners Association of Nigeria (MAN), ‘Dele Ayanleke, stressed the importance of addressing challenges such as insecurity and limited regulatory capacity, which have hindered the sector’s growth. He lauded the recent “Mining Marshal” initiative by the Ministry as a positive step but called for targeted investments in technical capacity to curb illegal activities in mining.
The NEITI report sheds light on the unrealized potential of Nigeria’s solid minerals, advocating for strategic reforms to leverage these resources for sustainable economic growth.