Poor performance of the mining sector in Nigeria, again, stirred concerns among stakeholders in Abuja,yesterday, as challenges of corruption and illegal mining were brought to the fore.
While countries across the world make fortunes from gold and other solid minerals, which are in abundant in Nigeria, a new report by Nigerian Extractive Industry Transparency Initiative (NEITI) showed that the sector only generated N193.59 billion in 2021, with N177.44 billion flowing into the federation account.
Contributing 0.63 per cent to Gross Domestic Product (GDP), the report showed an increase of N60.32 billion or 51.89 per cent growth, when compared to 2020 revenue flows of N116.82 billion.
Presenting the report, Secretary to the Government of the Federation, George Akume, said the current administration is committed to tackling corruption in the extractive industry.
He asked all extractive industry companies to comply with statutory and mandatory submission of data, to ensure full and timely compliance with Nigeria’s EITI process.
Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, said the 2021 solid minerals report reviewed, ascertained, reconciled and reported all revenues and investment flows to and from government in the sector.
“The report, which is NEITI’s 12th, covered actual payments by 1,214 companies operating in the sector and receipts by three government agencies, the quantities of minerals that they produced, utilised and exported from the sector; reconciled the physical/financial transactions; and undertook special verification on some processes,” he said.
The report also covered balances payable/receivable from financial inflows, and tracked the funds meant for the development of solid minerals in Nigeria.
The funds covered in the report include Natural Resources Development Fund, Solid Minerals Development Fund (SMDF), Ministry of Mines and Steel Development’s (MMSD) MinDiverProgramme, and Solid Minerals Development Funds under the Small and Medium Industries Equity Investment Scheme (SMIEIS), operated through the Bank of Industry.
The report observed a consistent year-on-year increase in revenue to the federation account from the solid minerals sector in the past 15 years (2007-2021). It puts total revenue that accrued to the government during these years at N818.04 billion.
Pointing out that this is significantly low, compared to the economic potential of the sector, it noted that of N6.62 trillion total government revenue in 2021, the solid minerals sector barely contributed 2.6 per cent.
