NEITI demands urgent reforms to unlock Nigeria’s N400bn mining sector

The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for sweeping reforms to reposition the country’s mining industry, warning that failure to act urgently will leave Nigeria lagging behind in the global green energy race.

Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji, made the call in Abuja at the 5th West African Mining Host Communities Indaba, where he declared that Nigeria’s N400bn solid minerals earnings in 2023, just 0.83 percent of GDP, show the sector’s vast but untapped potential.

He lamented that despite having over 44 mineral types across 500 locations, the country continues to lose billions through illegal mining, smuggling, environmental destruction, and neglected host communities.

“We gather at a moment when Nigeria must decide whether its vast mineral wealth will be a blessing for generations, or another story of squandered opportunities. The time for us to make that decision has come, it is now. And this forum should be part of that decision.

“For decades, we have lamented that Nigeria’s solid minerals sector, with over 44 distinct mineral types across 500 locations in all states and virtually local communities in Nigeria, contributes less than 1% to GDP.

“In our last solid minerals audit report in 2023, the total revenue earnings for that year stood at N401,868,627,340 which represented 0.83% of our total GDP in the year under review. This shows clearly that the sector needs urgent attention in spite of all the renewed efforts by the current Minister Hon. Dele Alake and his team.

“We have repeated the statistics of lost revenues, smuggling of precious minerals, illegal mining, environmental destruction, and neglected communities. Today, the time for lamentation is over.

“The world is racing into the green energy future. Lithium, cobalt, nickel, and rare earths are now more valuable than oil. If Nigeria does not act boldly and immediately, we will again watch others turn their resources into national wealth while ours remain trapped beneath the soil.” Orji said

According to him, Nigeria must urgently modernize its mining laws, strengthen weak institutions, and embed transparency in governance if it must transform solid minerals into a key driver of diversification, jobs, and revenues.

He recommended that a new Solid Minerals Reform Act be passed within the next 12 months, alongside the creation of a National Minerals Development Council chaired at the highest political level.

He also called for a Real-Time Mining Cadastre Portal for transparent licensing, tougher enforcement on illegal mining, and investments in local mineral processing.

“NEITI is ready to serve as the accountability anchor of these reforms through deployment of credible data and multi-stakeholder engagements,” Orji stated, stressing that reforms must guarantee visible benefits for communities in the form of schools, hospitals, roads, jobs, and security.

While further emphasizing that the solid minerals sector can no longer remain on the margins of Nigeria’s economy but must stand as a pillar of diversification, a magnet for investment, a driver of decent jobs, and a guarantor of community dignity, Orji charged stakeholders to leave the Indaba with a shared resolve.

“No more lamentation, no more preparation without execution. The time is now to reform, to legislate, to implement, and to deliver. If Nigeria seizes this moment, our minerals will not just power batteries and electric cars abroad; they will power prosperity, justice, and hope here at home.”

Also speaking, Second Secretary (Political) of the Australian High Commission, Bede Thompson, stressed that mining communities must be seen as partners in progress as the world transitions to cleaner energy.

“The Australian Government firmly believes that responsible and inclusive mining is possible. It is crucial that mining communities are empowered to seize the opportunities presented by the global energy transition. Mining companies must also view host communities as partners. This is the standard we expect from Australian companies operating around the world,” Thompson said.

He highlighted ongoing cooperation between Nigeria and Australia, noting recent visits by Solid Minerals Minister Dele Alake and officials to Australia for capacity development and the participation of Nigeria Solid Minerals Company’s CEO in the Africa Down Under event in Perth.

“The future is mining, and mining communities are partners in progress,” he added.