NEITI Warns of Illicit Mining's Impact on Nigeria's Wealth

The Nigeria Extractive Industries Transparency Initiative (NEITI) issued a warning regarding the detrimental impact of illicit mining activities on Nigeria's mineral wealth, as stated in a press release by Mr. Obiag Onuorah, Director of Communications and Stakeholder Management at NEITI.

Despite Nigeria's vast mineral deposits, including gold and lithium, the sector suffers from weak regulatory oversight and organized crime infiltration, leading to significant revenue leakage. NEITI's 2023 industrial audit report indicates that the mining sector contributes approximately N401 billion to the economy, accounting for 0.72% of Nigeria's Gross Domestic Product (GDP).

The report reveals that 70% of mining activities are dominated by artisanal and small-scale miners operating outside regulatory frameworks, with 80% of illegal mining concentrated in the northwest, particularly in Zamfara, Katsina, and Kaduna states. NEITI proposes seven reform measures to address these challenges, including stronger inter-agency collaboration and mandatory beneficial ownership disclosure.