Making a total N1.6 trillion Gross Domestic Product (GDP), which represents 0.8 per cent, it may take Nigeria about 3,500 years to realise the full potential of the resources primarily mined into private pockets.
The sector’s report, released yesterday in Abuja by the Nigerian Extractive Industries Transparency Initiative (NEITI), showed that about 2,000 mining companies were indebted to the government in taxes and royalties.
According to the report, Ogun, Kogi and Rivers states made the highest in mineral production, as Ogun produced 15.36 billion tonnes, contributing N966.83 million in royalties.
Speaking at the event, the Minister of Solid Minerals Development, Dele Alake, who was represented by the Executive Secretary of Solid Minerals Development Fund (SMDF), Fatima Shinkafi, said the government remained determined to harness the solid minerals of the country.
Alake, who had said the solid mineral reserves were worth $750 billion, noted that a future in which mineral resources drive Nigeria’s economic diversification, generate sustainable revenue and contribute meaningfully to national development, “is sacrosanct”.
Decrying the long reliance on the oil and gas sector, Alake said Nigeria needed to diversify revenue streams, and that the solid minerals sector must be developed to realise that dream.
“The Ministry of Solid Minerals Development is championing policies and reforms to ensure that this sector becomes a strong pillar of Nigeria’s economy, contributing to job creation, sustainable development and
resilience.’’
“These initiatives are designed to attract domestic and foreign investments, streamline the regulatory environment and create a stable, predictable framework for investors,” he stated.
According to him, the National Mineral Resources Development Policy, for example, provides a clear direction for sustainable mining practices, environmental protection and resource optimisation.
“We have also undertaken reforms to improve licensing processes and encourage responsible mining, aiming to create a business-friendly environment that strengthens investor confidence and fuels economic growth,” he said.
Executive Secretary and Chief Executive Officer of NEITI, Dr Orji Ogbonnaya Orji, said the discrepancies between government revenues and company payments in the mining sector must be addressed.
While describing the solid mineral sector’s growth prospects as promising, with the country’s rich mineral resources offering opportunities for economic development, he stressed that challenges persist, especially inadequate infrastructure, regulatory frameworks and environmental concerns.
Orji noted that “unless there is strengthened collaboration between government agencies, companies and communities”, desired results would be elusive.
NEITI’s audit reports, he pointed out, consistently provided valuable insights into the extractive industries, leading to significant reforms and improved revenue collection.
At the event, the National President of the Miners Association of Nigeria, Dele Ayanleke, noted that while recognising the vital role of the oil and gas sector in the economy, the solid minerals sector held immense potential for wealth creation through extensive job opportunities for the youth and the growth of cottage industries.
He further highlighted the country’s rich mineral endowment, adding: “Nature has generously scattered these mineral deposits across all 774 local councils of the nation. What remains is for us, as a nation, to harness these resources strategically and manage the resulting social and economic benefits wisely.”
Ayanleke also stressed the importance of addressing the structural issues hindering the sector’s growth.
He said, “We must intensify efforts to overcome the challenges stalling the development of the mining sector and preventing it from reaching its full potential.”
He identified insecurity as a major obstacle, explaining that the mining space had been compromised by both local and foreign armed groups. “Addressing insecurity must be treated as a national emergency,” Ayanleke insisted.
