The Federal Government has expressed dissatisfaction with the underperformance of the solid minerals sector in contributing to Nigeria’s Gross Domestic Product (GDP) and revenue generation. ‘

According to data from the Nigeria Extractive Industries Transparency Initiative (NEITI), the sector’s revenue fell significantly short of that generated by the oil and gas industry, with a gap of over $392.6 billion.

Over a span of 13 years, the solid minerals sector contributed approximately $1.4 billion (equivalent to N624.6 billion at the current exchange rate) to the country’s revenue.

In contrast, the oil and gas sector generated $394 billion in just 10 years, surpassing the solid minerals sector’s revenue by $392.6 billion.

NEITI, in its recently released Strategic Plan for 2022-2026, emphasized the need to prioritize the solid minerals sector.

The agency asserted that if the industry were opened up to investments, it could potentially contribute more than 60 percent to the nation’s GDP, as opposed to its current meager 1.8 percent contribution.

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NEITI’s data revealed that Nigeria earned varying amounts from solid minerals in different years. For instance, in 2007, 2008, 2009, 2010, and 2011, the country earned N7.6 billion, N10.6 billion, N19.2 billion, N17.1 billion, and N27 billion, respectively.

Subsequently, in 2012, 2013, 2014, 2015, and 2016, revenues amounted to N25.6 billion, N30.3 billion, N49.2 billion, N64.5 billion, and N43.2 billion, respectively.

NEITI expressed disappointment with the sector’s output, considering its potential for generating substantial revenue.

The agency emphasized that the solid minerals sector could significantly contribute to Nigeria’s economy, even surpassing the oil and gas industry’s contribution.

NEITI’s Executive Secretary, Ogbonnaya Orji, highlighted the agency’s focus on promoting transparency and accountability in the solid minerals sector.

Orji mentioned that the Federal Executive Council was drafting a bill to amend the 2007 Mineral Act and attract investments to the sector.

Additionally, there is an ongoing dispute between the federal and state governments regarding tax collection, which needs resolution.