Senator Osita Ngwu, the Chairman of the Senate Committee on Solid Minerals, Mines, Steel Development, and Metallurgy, reiterated his unwavering dedication to collaborative efforts with the Ministry during the unveiling of the Nigeria Extractive Industries Transparency Initiative (NEITI) Solid Minerals Industry Report on September 4, 2023. The event took place at Fraser Suites in Abuja, Nigeria.
The NEITI report for the year 2021 revealed that the federal government of Nigeria generated a substantial revenue of N193.59 billion from the solid minerals sector. This marked a significant increase of ₦60.32 billion, signifying a 51.89% growth compared to the revenue flows in 2020. However, while this growth is promising, it also underscores both potential and underperformance within the sector. The report emphasized that the solid minerals sector contributed a mere 2.6% of the total government revenue in 2021, highlighting the sector's untapped potential. The report delved into various aspects, including production volumes, export values, and the challenges faced by the sector, while urging for reforms and greater transparency in harnessing the sector's economic potential.
Senator Osita Ngwu, in his address, expressed his appreciation for NEITI's invitation and stressed the critical importance of the Solid Minerals Sector in Nigeria's economy. He commended the government's recognition of the sector's significance and its declaration as the "New Oil," a move he finds promising. Senator Ngwu reaffirmed his committee's commitment to working diligently and collaboratively with the Ministry to address the challenges and revise the enabling laws, ultimately removing obstacles hindering the sector's success and alignment with global best practices.
While acknowledging NEITI's role in utilizing the information contained in the report for monitoring and oversight, Senator Ngwu suggested a different approach. He emphasized the need for the Mining Inspectorate of the Ministry to be rebranded, well-equipped, updated, and scaled up to effectively carry out its statutory role in the sector, considering the urgency required. He voiced concerns about the illicit activities of individuals perpetrating illegalities in the sector, often with international connections, and stressed the importance of implementing measures to curtail these activities effectively.
Dr. Orji Ogbonnaya Orji, the Executive Secretary of NEITI, presented the 2021 figures during the unveiling. He highlighted a substantial increase of ₦60.32 billion or 51.89% growth compared to the 2020 revenue flows of ₦116.82 billion. Dr. Orji noted that, despite this growth, the sector's contribution to the Nigerian economy remains far below its potential. The report serves as a call to action for reform and greater transparency to unlock the solid minerals sector's full economic potential.
