…Senate frowns at less than 1% solid minerals input to GDP

The Nigeria Extractive Industries Transparency Initiative (NEITI), on Monday said Nigeria needed to inject about $200 billion to maximize gas infrastructure as the ninth highest producer of gas in the World and number one in Africa.

This was as the Senate, seriously frowned at the less than 1% contribution of proceeds from solid minerals to GDP on yearly basis.

The Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji, disclosed this in his 2021- 2023 reports on Oil, Gas and Solid Minerals presentation to the Public Accounts Committee, Chaired by Senator Aliyu Wadada, saying that the required infrastructure for maximization of gas resources in the country was not there.

He said: “Based on NEITI’s findings , Nigeria needs to invest at least $20 billion per year into gas infrastructure for a period of ten years. The only thing that Qatar Energy does is gas processing through required infrastructure.

“So, in Nigeria, what we need, is to invest in gas infrastructure to evacuate gas. And our study shows that we need an initial investment of $20 billion annually for 10 years to be able to generate the kind of gas infrastructure required to provide gas for the whole of Africa and beyond.

“This of course, will require construction of gas pipelines along and across,West African sub-region, and beyond which is a huge expenditure”.

When asked on what NEITI was doing on alleged $8.5 billion unremitted into the consolidated revenue fund by Nigerian National Petroleum Company Limited, Federal Inland Revenue Service and Nigerian Upstream Petroleum Regulatory Commission in 2023, the NEITI boss said the Economic and Financial Crime Commission (EFCC), is already probing the agencies involved.

He however, added that the Solid Minerals sector is not giving the country desired revenue as yearly proceeds from the sector is less than 1% to GDP.

Aggrieved by the submission, the Chairman and members of the Committee said NEITI’s report on solid minerals, is not reflective of what is going on in the solid mineral sector.

They wondered why only States like Ogun , Osun, Kogi, Edo, Ebonyi, Rivers, Cross Rivers and FCT, were mentioned in the report leaving out Nasarawa, Zamfara, Kebbi, Plateau, Bauchi etc.

The Chairman of the Committee, Senator Wadada, described the less than one 1% contribution of solid minerals to GDP as quite ridiculous and unacceptable.

“This definitely must not continue, there must be complete overhaul of the sector”, he said.