The Nigeria Extractive Industries Transparency Initiative (NEITI) has renewed calls for the elimination of multiple taxation in the country’s solid minerals sector, warning that the existing tax structure is discouraging investment and limiting the sector’s contribution to the national economy.
Speaking during a policy dialogue in Abuja, NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, emphasized that multiple taxes imposed by federal, state, and local authorities have become a major disincentive for both local and foreign investors in the industry.
According to him, “The solid minerals sector holds the key to Nigeria’s economic diversification, but the issue of multiple taxation remains a major barrier. We are engaging with the government at all levels to harmonize these taxes, streamline procedures, and make the sector more attractive to investors.”
Dr. Orji further explained that NEITI’s 2023 Industry Report identified over 20 different taxes and levies currently imposed on mining operators, often leading to duplication, extortion, and loss of government revenue. The report also noted that many companies were forced to shut down operations due to high compliance costs.
In collaboration with the Ministry of Solid Minerals Development and the Federal Inland Revenue Service (FIRS), NEITI is pushing for a unified fiscal framework that will ensure transparency, improve revenue collection, and create a level playing field for all operators.
Economic analysts have long maintained that Nigeria’s overdependence on oil has limited the growth of other sectors, especially mining, which has the potential to generate billions in export earnings and job opportunities. The World Bank estimates that Nigeria sits on mineral resources worth over $700 billion, yet contributes less than 1% to the country’s GDP.
A representative of the Miners Association of Nigeria (MAN), Mr. Dele Ayanleke, lauded NEITI’s move, describing it as a step in the right direction. “Our members have suffered for years from uncoordinated taxation by local governments and revenue agencies. This initiative, if fully implemented, will encourage compliance and enhance productivity,” he said.
Similarly, the Ministry of Solid Minerals Development expressed support for NEITI’s efforts, noting that the harmonization process will be included in the forthcoming review of the Nigerian Minerals and Mining Act. The ministry added that an investor-friendly tax regime is crucial to unlocking the full potential of the mining sector.
Experts believe that if the reform succeeds, Nigeria could witness increased foreign direct investment (FDI), job creation, and sustainable growth in its mining industry aligning with the federal government’s broader goal of diversifying the economy and boosting non-oil exports.
