The Nigeria Extractive Industries Transparency Initiative (NEITI) has urged the Nigerian government to implement reforms to transform the country’s mineral resources into tangible prosperity. According to NEITI, the solid minerals sector has underperformed despite its vast potential, with the latest audit revealing a revenue of ₦401.87 billion in 2023, which represents only 0.83% of the country’s GDP.
The poor performance of the sector is attributed to weak laws, illegal mining, smuggling, outdated governance, and neglected host communities. NEITI’s Executive Secretary, Orji Ogbonnaya Orji, emphasized that the sector’s stagnation is a result of these anomalies, which have hindered its growth despite the increasing global demand for green-energy minerals such as lithium, cobalt, and nickel.
The transition to clean energy has increased the value of Nigeria’s mineral resources, making them more valuable than oil. With decisive reforms, the sector can attract significant investments, generate substantial revenues, create quality jobs, and bring development to host communities. NEITI has called for immediate action, stating that failure to do so will result in other countries transforming their mineral wealth into prosperity while Nigeria watches.
To address these issues, NEITI has tasked the federal government and National Assembly to pass the New Solid Minerals Reform Act within 12 months. The agency has also recommended the creation of a National Minerals Development Council chaired by the Presidency and the launch of a Real-Time Mining Cadastre Portal for transparent, digital licensing. Additionally, NEITI has urged the government to embed Free, Prior & Informed Consent (FPIC) into law for host communities and strengthen the Solid Minerals Development Fund to finance infrastructure projects.
The implementation of these reforms is crucial to curb smuggling and illegal mining, invest in local processing, and retain wealth and jobs. NEITI has also emphasized the need to guarantee gender and youth inclusion across the mining value chain. By taking bold and immediate action, the Nigerian government can transform the country’s mineral resources into visible prosperity, driving economic growth and development.