Mining sector in Nigeria contributes less than 1% revenue

Mining sector in Nigeria has presented a low contribution towards the country’s GDP. Dr. Orji Ogbonnaya Orji, the Executive Secretary, Nigeria Extractive Industries Transparency Initiative announced the sector has contributed less than 1% revenue.

Dr. Ogbonnaya decried the persistent low revenue contribution of the solid minerals sector to the economy and said investigations and audit of the mining sector indicate a polarization by artisanal and small-scale miners who take advantage of the land but do not contribute or remit income to the economy.

“We are aware that the sector is dominated by artisanal and small-scale miners, and we have advised the government through recommendations contained in our reports to devise means to formalize operations of this category of miners to enable them to contribute to the development of the sector and the economy,” said the Executive Secretary.

Illegal minerals

Orji further described the existence of illegal minerals buying centers across the country as a major source of revenue leakage to the federal government.

“We are going track either local or foreign funds meant for the development of mining sector, we are also going to advocate for equitable and judicious application of such fund. NEITI will look into the inflows and the management of the solid minerals development fund. We want the fund to be accessible, useful, and timely available to the end-users,” said Dr. Ogbonnaya

“So far, we have conducted and published a total of ten cycles of audits covering the period 2007 to 2019 in the solid minerals sector. Our audits essentially tracked and reconciled revenue payments by companies to government, ensuring that companies pay what they ought to pay and the government received what it ought to receive,” he added.

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