NEITI Urges End to Multiple Taxation in Nigeria’s Solid Minerals Sector to Boost Investment and Compliance

he Nigeria Extractive Industries Transparency Initiative (NEITI) calls for urgent reform to eliminate multiple taxation in the solid minerals sector, citing it as a major barrier to investment, transparency, and sustainable growth.

Oct 16, 2025 - 13:12
 0  859
NEITI Urges End to Multiple Taxation in Nigeria’s Solid Minerals Sector to Boost Investment and Compliance

Abuja, 16 October 2025 – The Nigeria Extractive Industries Transparency Initiative (NEITI) has urged policymakers to establish a unified, transparent, and predictable regulatory framework for Nigeria’s solid minerals sector, emphasizing that such reforms are essential for sustainable growth and attracting long-term investment.

While NEITI’s recent review highlights notable progress in the sector’s licensing procedures, the agency stresses the need to address overlapping policies and multiple taxation, which continue to deter credible investors and limit overall sectoral expansion.

The Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, made the remarks at the 2025 Nigeria Mining Week in Abuja.

“Nigeria’s mining industry is at a pivotal stage, undergoing reforms designed to elevate it from a largely informal and underperforming sector to a cornerstone of economic diversification and energy transition,” Dr. Orji said.

Citing the findings of NEITI’s 2023 Solid Minerals Industry Report, he noted that the sector’s contribution to GDP remains under 1 percent, despite revenues increasing from ₦339.57 billion in 2022 to ₦401.87 billion in 2023. Dr. Orji emphasized that these figures fall short of the sector’s full potential, pointing out that artisanal and small-scale miners account for over 80 percent of production volumes but contribute less than 30 percent of royalties, highlighting structural and governance challenges requiring urgent reforms.

Dr. Orji applauded the Federal Government for reforms already implemented, including:

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

  • 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 as part of the Energy Transition Plan.

  • Proposed review of the Nigerian Minerals and Mining Act, 2007, to reflect current realities.

“These initiatives reflect a clear shift from discretion to data, and from opacity to transparency. NEITI fully supports these reforms because transparency builds trust, and trust drives investment,” Dr. Orji stated.

READ MORE

He added that NEITI has evolved beyond auditing to becoming a reform-oriented institution, reconciling company payments and government receipts to ensure fiscal accountability across the extractive sector. The agency has also conducted 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, outlining a roadmap for managing the shift to cleaner energy inclusively and transparently.

Dr. Orji also urged a strategic focus on critical minerals such as lithium, cobalt, and manganese to position Nigeria advantageously in the global energy transition. He called on mining stakeholders to support the development of a National Mineral Reserve Database accessible to both investors and the public, alongside:

  • Streamlining fiscal and royalty structures to eliminate duplication.

  • Promoting local processing and value addition to maximize economic benefits.

  • Strengthening environmental, gender, and community development frameworks.

  • Advancing reforms that increase indigenous participation, protect local jobs, and safeguard national interests.

Representing President Bola Ahmed Tinubu, the Secretary to the Government of the Federation, Senator George Akume, described Nigeria Mining Week as a growing global forum for dialogue on responsible mining and economic renewal. President Tinubu emphasized Nigeria’s leadership role in Africa, stating that a thriving mining sector signals Africa’s path toward value-added resource development.

Noting that the continent holds approximately 30 percent of global mineral reserves, the President urged that these resources be responsibly developed to retain economic value domestically, create jobs, and build industrial clusters. “Nigeria has no reason to be poor, given our abundant resources and talented people. Our challenge is harnessing these potentials for prosperity. Let us turn our minerals into miracles of development,” he declared.

President Tinubu reaffirmed the government’s commitment to ensuring mining areas are safe for all stakeholders, including investors, workers, and host communities.

Earlier, the Honourable Minister of Solid Minerals Development, Mr. Oladele Alake, presented a progress report on reforms under the current administration aimed at transforming the mining sector into a key driver of economic growth.

On the sidelines of the Mining Week, Dr. Orji also addressed a forum hosted by Kaduna Mining Development Company, emphasizing transparency and accountability as critical to enhancing investor confidence, productivity, and sustainable impact. He highlighted the strategic role subnational mining companies can play in driving institutional reforms and attracting investment to state economies.

Chris Ochonu
Deputy Director, Communications & Stakeholders Management

ADVERT

Kindly share this story:

Contact: report@probitasreport.com

Stay informed and ahead of the curve! Follow The ProbitasReport Online News Report on WhatsApp for real-time updates, breaking news, and exclusive content especially when it comes to integrity in business and financial fraud reporting. Don't miss any headline – and follow ProbitasReport on social media platforms @probitasreport

[©2025 ProbitasReport - All Rights Reserved. Reproduction or redistribution requires explicit permission.]

ADVERT

What's Your Reaction?

like

dislike

love

funny

angry

sad

wow

Joyce Idanmuze Joyce Idanmuze is a seasoned Private Investigator and Fraud Analyst at KREENO Debt Recovery and Private Investigation Agency. With a strong commitment to integrity in business reporting, she specializes in uncovering financial fraud, debt recovery, and corporate investigations. Joyce is passionate about promoting ethical business practices and ensuring accountability in financial transactions.