Nigeria’s extractive and mining sector contributed N1.14 trillion to the Federation Account between 2019 and 2023, according to reports from various government agencies including the Nigerian Extractive Industries Transparency Initiative (NEITI). This revenue was shared across federal, state, and local governments, demonstrating the sector’s growing role in Nigeria’s GDP.
NEITI’s Executive Secretary, Dr. Ogbonnaya Orji, emphasised the sector’s expansion potential and stressed the importance of addressing discrepancies between government revenues and company payments. Orji highlighted NEITI’s collaborations with government agencies, companies, and civil society, noting the positive impact on revenue collection and regulatory compliance.
The report showed substantial revenue growth, from N79.96 billion in 2019 to N401.87 billion in 2023—a 261% increase. However, 1,619 companies still owe the government N680.3 million in unpaid fees and royalties. NEITI’s efforts include establishing a data centre to enhance transparency and strengthening interagency collaboration to sustain growth.
“The 2023 report underscores the sector’s evolution into a vital revenue contributor for Nigeria, with cumulative contributions now exceeding N1tn,” Orji stated, emphasising the potential for further growth as regulatory compliance and reporting continue to improve.
He added, “The solid mineral sector’s growth prospects are promising, with Nigeria’s rich mineral resources offering opportunities for economic development.”
“However, challenges persist, including inadequate infrastructure, regulatory frameworks, and environmental concerns.”
To address these challenges, Orji called for strengthened collaboration between government agencies, companies, and communities. He said the organisation’s efforts have yielded positive results, including the development of a data centre to consolidate scattered data and enhance transparency. He further affirmed the secretariat’s commitment to achieving an outstanding validation outcome by January 2026.
An analysis of the report obtained revealed economic activities from the sector have steadily increased revenue remitted to the federation account, from N79.96bn in 2019 to N401.87bn in 2023.
It read that this figure represents a growth of N515.5bn or 261 per cent within five years. A breakdown of the revenue showed that N79.96bn was remitted in 2019, N128.17 in 2020, N193.59bn in 2021, N339.57bn in 2022, and 401.87 in 2023. It also showed Ogun, Kogi, and Rivers states as leaders in mineral production, with Ogun producing 15.36 billion tonnes and contributing N966.83n in royalties.
