By Abba Hamisu Sani
Africa-Press – Nigeria. Nigeria is blessed with a vast amount of solid minerals, but the sector has not contributed significantly to national revenue due to illegal mining activities and poor investment in exploration and research.
President Tinubu’s efforts to reform and regulate the sector have led to a notable increase in revenue generation compared to previous administrations.
Available data indicates that revenue from solid minerals rose from ₦6 billion (approximately $3.78 million) in 2023 to ₦38 billion (around $23.93 million) in 2024.
Transforming the Solid Minerals Sector
Driven by the Tinubu administration’s new policies on local value addition and a stricter licensing regime, Nigeria’s solid minerals sector attracted over $800 million in processing investments in 2024.
The Minister of Solid Minerals Development, Dr. Dele Alake, revealed this in a recent interview ahead of President Tinubu’s second anniversary in office.
“The sector also generated over ₦38 billion in revenue in 2024, up from just ₦6 billion the previous year, despite receiving only 18% of its ₦29 billion budget allocation,” the Minister said.
Dr. Alake noted that investor interest has increased significantly, driven by the administration’s mining sector reforms.
He listed key projects including:
A $600 million lithium processing plant near the Kaduna-Niger border, scheduled for commissioning this quarter;
A $200 million lithium refinery on the outskirts of Abuja, nearing completion;
Two additional processing plants in Nasarawa, slated for commissioning before the third quarter of 2025.
These investments follow the administration’s policy that no miner is granted a license without a clear plan for local processing. “The days of exporting raw minerals from pit to port are over,” Dr. Alake emphasized.
“When we took office, the entire sector generated ₦6 billion annually. By the end of 2024, we had reached ₦38 billion—achieved with only 18% of our ₦29 billion budget released. This demonstrates the effectiveness of our policy framework,” he added.
According to the Minister, in Q1 2025 alone, two regulatory agencies—the Mining Cadastral Office (MCO) and the Mines Inspectorate—recorded ₦6.9 billion and ₦7 billion in revenue respectively.
Exploration and Comparisons with Other African Nations
The Minister projected that 2025 would be a record-breaking year for the sector, citing the current ₦1 trillion budget allocation for mineral exploration, aimed at generating internationally certified geological data.
“Exploration is key. When we came in, Nigeria had spent just $2 million on exploration, compared to $40 million in Sierra Leone, $148 million in Côte d’Ivoire, and over $300 million in South Africa. No serious investor will invest without credible data.
We are now focused on turning our mineral wealth into domestic economic value—jobs, technology, and manufacturing,” he said.
As part of its seven-point agenda, the Minister said the government has taken aggressive steps to curb illegal mining and formalize artisanal activities.
Over 300 illegal miners were arrested in the past year, 150 prosecutions are ongoing, and nine convictions—some involving foreign nationals—have been secured.
“We adopted both kinetic and non-kinetic strategies. While enforcement through the Mining Marshals has yielded results, we are also empowering locals by organizing them into cooperatives, making them eligible for financing and revenue-sharing,” Dr. Alake said.
He added that over 250 mining cooperatives have been established nationwide to integrate informal miners into the formal economy.
Nigeria to Lead Africa’s New Initiative on Solid Minerals Development
Dr. Alake announced that Nigeria now chairs the newly formed African Mineral Strategy Group, a continental bloc dedicated to ensuring local value addition and fair mineral trade deals across Africa.
“This position was secured following Nigeria’s leadership at the 2024 Future Minerals Forum in Riyadh. We’re leading Africa in declaring that raw material exports without domestic beneficiation must end,” he said.
More Investors Willing to Come
Reflecting on the growing investor confidence, Dr. Alake said global players—including government officials from the UK, USA, Saudi Arabia, and UAE—have expressed interest in Nigeria’s lithium and other critical minerals.
“The former British Deputy Prime Minister personally invited me to Downing Street to discuss their interest in Nigerian lithium.
The U.S. is also looking to diversify away from China and sees Nigeria as a viable alternative,” he noted.
With new revenue streams, increased foreign direct investment, tightened regulation, and a clear path toward industrialization, Nigeria’s solid minerals sector has become a pillar of the Tinubu administration’s economic diversification agenda.
“Nigeria has never had it this good in the solid minerals sector. We’re restoring confidence, building data, enforcing the law, and returning value to Nigerians from their resources.
The Mining Cadastral Office alone received over 10,000 applications from local and foreign investors in this quarter alone. That shows this sector is vibrant. The vitality we’ve introduced into this sector is unprecedented,” he added.
Expert Reactions
Musa Bala, a geologist and mining sector commentator, praised the Tinubu administration’s efforts. He believes the solid minerals sector will soon become a significant alternative revenue source for Nigeria.
“Previous administrations focused mainly on oil and gas, neglecting the solid minerals sector—one of the most profitable areas. Look at how revenue jumped from ₦6 billion to ₦38 billion in just one year,” he said.
He urged the federal government to fund more research and exploration, provide adequate security in mining areas, and collaborate with local communities for mutual benefit.
“The Ministry of Solid Minerals Development under Dr. Dele Alake deserves commendation. If this direction continues, more jobs will be created, and both domestic and foreign investment will grow,” he added.
Conclusion
Nigeria holds a strategic position in Africa’s solid minerals landscape, serving as a hub for a wide range of industrial and precious minerals. Although the level of exploration remains low, the federal government says it is committed to developing the sector.
The country’s mineral resources include gold, coal, iron ore, lithium, bitumen, gemstones, among others. The sector is valued at over $750 billion, yet its current contribution to Nigeria’s GDP is still relatively low.
With ongoing reforms, increased investment, and strong regulatory oversight, Nigeria’s solid minerals sector is poised to become a major driver of economic growth and diversification.
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