The report revealed a significant increase in government receipts, rising from ₦7.59 billion in 2007 to ₦341.27 billion in 2022.
The Nigerian Extractive Industries Transparency Initiative (NEITI) reported that the solid minerals sector contributed ₦1.137 trillion in direct payments to various levels of government from 2007 to 2023.
NEITI made this announcement on Wednesday in Abuja, during the presentation of the 2023 Solid Minerals Audit Report, the 16th audit cycle. The report provided a comprehensive overview of the sector’s contributions between 2007 and 2023.
The audit, conducted by indigenous firm Haruna Yahaya and Co., covered the solid minerals industry’s economic contributions, revenue streams, and exports, and included recommendations for sector reforms.
The report demonstrated a remarkable increase in government receipts, with a rise from ₦7.59 billion in 2007 to ₦341.27 billion in 2022—representing a 44-fold growth and highlighting substantial sector expansion.
The 2023 report emphasised the sector’s transformation into a crucial revenue generator for Nigeria, with cumulative contributions surpassing ₦1 trillion.
In 2022 alone, the sector generated ₦345.41 billion, with a reconciled final revenue of ₦329.92 billion.
“An analysis of company payments revealed that total government revenue, including both reconciled and unilaterally disclosed figures, reached ₦401.87 billion in 2023,” the report stated.
“Key revenue sources included VAT (₦128.32 billion), FIRS taxes (₦370.09 billion), Education Tax (38.64%), Company Income Tax (10.64%), and royalties (₦9.06 billion).”
“Initial discrepancies amounted to ₦301.6 billion but were reconciled to ₦100 million, reflecting NEITI’s commitment to transparency,” the report added.
Production and export data indicated that 95.07 million tonnes of minerals were produced in 2023, with exports amounting to 4.32 million metric tonnes, valued at ₦117.29 billion.
The report identified top mineral-producing states, including Ogun, Kogi, and Rivers, with Ogun leading in production.
Revenue contributions were notably led by Osun, Ogun, and Kogi states.
It also noted that the solid minerals sector contributed 0.83% to the GDP in 2022, with a slight increase to 0.75% in 2023, signalling untapped potential.
The report reiterated the policy measures and reforms necessary to unlock the sector’s full capacity to significantly contribute to Nigeria’s economic diversification.
