FG Generates N1.137tn From Solid Minerals 2007-2023 – NEITI Report

Posted by African Examiner Business News, Latest Headlines Thursday, October 31st, 2024

(AFRICAN EXAMINER) – The Nigerian Extractive Industries Transparency Initiative (NEITI) said the solid minerals sector contributed ₦1.137 trillion in direct payments to various government levels from 2007 to 2023.

NEITI disclosed this on Wednesday in Abuja while presenting the 2023 Solid Minerals Audit Report, the 16th audit cycle, which provided a comprehensive overview of the sector’s contributions from 2007 to 2023.

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 ₦7.59 billion in 2007 to ₦341.27 billion in 2022, a 44-fold rise, indicating solid sector growth.

The 2023 report underscored the sector’s evolution into a vital revenue contributor for Nigeria, with cumulative contributions now exceeding ₦1 trillion.

It disclosed that in 2022, the sector generated ₦345.41 billion, with a reconciled final revenue of ₦329.92 billion.

“Company payments analysis indicated that total government revenue, including reconciled and unilaterally disclosed figures, reached ₦401.87 billion in 2023.

“Key revenue streams included VAT (₦128.32 billion), FIRS taxes (₦370.09 billion), Education Tax (38.64 per cent), Company Income Tax (10.64 per cent), and royalties (₦9.06 billion).

“Discrepancies initially amounted to ₦301.6 billion but were reconciled down to ₦100 million, demonstrating NEITI’s transparency commitment,” the report said.

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 ₦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 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.(NAN)