Policy Brief: Enhancing Domestic Resource Mobilization and Climate Finance through Nigeria's Extractives Sector

Nigeria’s extractive sector remains underperforming despite its vast potential. Oil and gas continue to dominate national revenues, while solid minerals valued at over USD 700 billion contribute less than 1% of GDP. Weak fiscal governance, revenue leakages, and uncollected earnings amounting to over USD 6 billion hinder Domestic Resource Mobilization (DRM), even as the country faces a USD 27.2 billion annual climate finance gap.

Beyond revenue losses, poor extractive governance harms communities through pollution in the Niger Delta, unsafe artisanal mining, and climate disasters such as the 2022 floods. This policy brief calls for urgent reforms. It highlights seven key recommendations, including strengthening revenue enforcement, reforming fiscal regimes, formalizing artisanal and small-scale mining, scaling climate finance, improving transparency, and ensuring community benefit and consent.