NEITI Warns Illicit Mining Drains Nigeria's Mineral Wealth

The Nigeria Extractive Industries Transparency Initiative (NEITI) issued a warning regarding the detrimental impact of illicit mining activities on Nigeria's mineral wealth. In a press statement released on Thursday, NEITI's Director of Communication and Stakeholder Management, Mr.

Obiag Onuorah, emphasized that weak regulatory oversight and criminal infiltration are draining the country's mineral resources. Despite Nigeria's vast deposits of gold, lithium, limestone, and gemstones, illicit financial flows continue to undermine the solid minerals sector, contributing to revenue leakage and tax evasion.

NEITI's 2023 industrial audit report indicates that the mining sector contributes approximately N401 billion to the economy, accounting for 0.72 percent of Nigeria's Gross Domestic Product (GDP). The report also reveals that 70 percent of mining activities are dominated by artisanal and small-scale miners operating outside regulatory frameworks.

NEITI proposed seven reform measures to address these challenges, including stronger inter-agency collaboration and mandatory beneficial ownership disclosure.