NEITI Calls for End to Multiple Taxation in Nigeria’s Solid Minerals Sector

The Nigeria Extractive Industries Transparency Initiative (NEITI) has urged policymakers to establish a harmonized, transparent, and predictable regulatory framework for the solid minerals sector to sustain growth and attract long-term investments.

Speaking at the 2025 Nigeria Mining Week in Abuja, the Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, highlighted the need to eliminate policy overlaps and multiple taxation that continue to discourage credible investors and limit sectoral growth.

“Nigeria’s mining sector stands at a defining moment, undergoing far-reaching reforms aimed at repositioning it from a largely informal and underperforming space into a cornerstone of our economic diversification and energy transition strategy,” Dr. Orji stated.

According to NEITI’s 2023 Solid Minerals Industry Report, the sector’s contribution to GDP remains below 1%, despite revenues growing from ₦339.57 billion in 2022 to ₦401.87 billion in 2023. Dr. Orji noted that while the numbers show progress, they fall short of the sector’s full potential.

“Our data reveal that artisanal and small-scale mining accounted for over 80% of total production volumes but contributed less than 30% of royalties paid. This underscores deep governance and structural challenges that demand urgent reform,” he said.

Dr. Orji commended the Federal Government for bold steps taken so far, including:

• Revocation of dormant licenses and deployment of Mining Marshals to curb illegal mining.

• Launch of the Nigeria Mineral Resources Decision Support System (NMRDSS) to provide real-time geological and cadastral data.

• Integration of climate accountability and decarbonization measures into mining operations under the Energy Transition Plan.

• Proposed review of the Nigerian Minerals and Mining Act, 2007, to align with present realities.

“These reforms represent a shift from discretion to data, and from opacity to transparency. NEITI fully supports these measures because transparency builds trust, and trust drives investment,” Dr. Orji added.

On NEITI’s evolving role, he explained that the agency has moved from being a mere audit body to a full-fledged reform institution, reconciling company payments and government receipts to ensure fiscal accountability across the extractive value chain.

He further revealed that NEITI has completed a national study on the Impact of Energy Transition on Nigeria’s Oil-Dependent Economy, and produced a Policy Brief on Just Energy Transition and Climate Accountability Framework, providing a roadmap for Nigeria’s shift to cleaner energy.

Dr. Orji also urged the government to focus strategically on developing critical minerals such as lithium, cobalt, and manganese, positioning Nigeria competitively within the global energy transition landscape.

He emphasized the need to:

• Streamline fiscal and royalty regimes to eliminate duplication.

• Promote value addition and local processing.

• Strengthen environmental, gender, and community development frameworks.

• Encourage indigenous participation and safeguard local jobs.

Representing President Bola Ahmed Tinubu, the Secretary to the Government of the Federation, Senator George Akume, described the Nigeria Mining Week as “a global forum guiding Nigeria’s journey toward economic renewal through investor and company collaboration.”

“When our mining sector thrives, it signals that value-added resource development is Africa’s way forward. This event has made Abuja a hub for continental dialogue on responsible mining,” President Tinubu noted.

He emphasized that Africa, which holds about 30% of the world’s known mineral reserves, must ensure that its natural wealth translates into industrial growth, jobs, and prosperity.

“Nigeria has no reason to be poor. Our challenge is to harness our resources and talent to create shared prosperity. Let us turn our minerals into miracles of development — ‘Minerals to Miracles’ must be our rallying cry,” the President added.

Earlier, the Minister of Solid Minerals Development, Mr. Oladele Alake, presented a status report on the administration’s ongoing reforms aimed at transforming the mining sector into a key driver of economic growth.

On the sidelines of the event, Dr. Orji also addressed a special mining forum hosted by the Kaduna Mining Development Company, emphasizing transparency and accountability as essential tools for building investor confidence and ensuring sustainable growth.

He further outlined how subnational mining companies can lead institutional reforms and attract private capital to boost local economies.