Optical absorption and emission spectra are measured on Nd3+ ion in near-stoichiometric LiNbO3 single crystals codoped with MgO. From the decomposition of the nonpolarized spectra, the Stark splitting scheme is established for 2 wt % Nd3+ ion in the near-stoichiometric LiNbO3:Mg, Nd system. The induced emission cross sections are calculated to be 2.70×10-19 and 5.57×10-20 cm2 for the π and σ polarizations, respectively, based on the decomposition of the polarized spectra. These values agree well with the reported values of 1.8×10-19 and 5.1×10-20 cm2 for the π and σ polarizations of the conventional congruent-melt composition crystal through the branching ratio of emission spectra despite the different approach of calculations and difference in the near-stoichiometric and congruent-melt compositions. This fact shows that the slight difference in the host composition does not affect the cross section. The population inversion threshold is calculated to be 2.0×1016 for the Nd(2 wt %) near-stoichiometric LiNbO3:Mg, Nd in the π polarization, the value of which is almost the same as that of 1.5×1016 for <- roman>Nd:Y3Al5O12, one of the representative laser materials.