The Nigeria Extractive Industries Transparency Initiative (NEITI) has urged policymakers to establish a harmonized, transparent, and predictable regulatory framework for the country’s solid minerals sector. This call is aimed at sustaining growth and attracting long-term capital investments in the sector. According to Dr. Orji Ogbonnaya Orji, the Executive Secretary of NEITI, Nigeria’s mining sector is at a critical juncture, undergoing reforms to reposition it as a key driver of economic diversification and energy transition.

NEITI’s 2023 Solid Minerals Industry Report reveals that the sector’s contribution to GDP remains below 1%, despite revenues growing from ₦339.57 billion in 2022 to ₦401.87 billion in 2023. The report also notes that artisanal and small-scale mining accounted for over 80% of total production volumes but contributed less than 30% of royalties paid, highlighting deep governance and structural challenges that demand urgent reform.

The Federal Government has undertaken bold reforms in the sector, including the revocation of dormant licenses, deployment of Mining Marshals to curb illegal mining, and the launch of the Nigeria Mineral Resources Decision Support System (NMRDSS). NEITI commends these efforts, emphasizing that transparency builds trust and drives investment. The agency has also evolved from an audit agency to a reform institution, undertaking a national study on the impact of energy transition on Nigeria’s oil-dependent economy and developing a Policy Brief on Just Energy Transition and Climate Accountability Framework.

To further develop the sector, NEITI recommends streamlining fiscal and royalty regimes, promoting value addition and local processing, strengthening environmental, gender, and community development frameworks, and pursuing comprehensive reforms that enhance indigenous participation and protect local jobs. The agency also calls for strategic focus on developing critical minerals such as lithium, cobalt, and manganese to position Nigeria advantageously in the global energy transition landscape.

The Minister of Solid Minerals Development, Oladele Alake, presented a status report on reforms initiated by the present administration to transform the mining sector. Dr. Orji also addressed a special mining forum, underscoring the importance of transparency and accountability in repositioning the sector for greater productivity, investor confidence, and sustainable impact. NEITI’s efforts aim to ensure that the mining sector contributes significantly to Nigeria’s economic growth and development, while promoting transparency, accountability, and sustainability.