Nigeria’s Solid Minerals Reforms Jack Up Revenue From N16bn To N70bn In 2025

Nigeria’s solid minerals sector has witnessed unprecedented growth, with revenue expected to exceed ₦70 billion in 2025, up from ₦16 billion in 2023 and ₦38 billion in 2024.

These results have been achieved through sweeping reforms under President Bola Ahmed Tinubu’s administration and the leadership of the Minister of Solid Minerals Development, Dr Dele Alake.

“It is no happenstance that revenue from solid minerals has surged astronomically since the advent of the Tinubu administration,” said Segun Tomori, special assistant on Media to the Minister, in a statement to journalists on Wednesday.

“The sector has witnessed focused leadership, bold reforms, and renewed global attention. We are only just beginning to scratch the surface.”

Since taking office, Dr Alake has pursued a seven-point agenda to revamp the sector. In late 2023, 1,633 mining licenses were revoked for non-payment of annual service fees. In early 2024, an additional 924 dormant licenses were withdrawn to create opportunities for serious investors.

Guidelines for Community Development Agreements (CDAs) were also revised to make host community consent an essential part of the license application process.

Illegal mining remains a significant challenge, and the Ministry has responded by establishing Mining Marshals in 2024. Within just over a year, more than 300 illegal miners have been apprehended, about 150 are undergoing prosecution, and 98 illegal mining sites have been reclaimed. Nationwide satellite surveillance of mining sites is expected to launch in 2026 to further support enforcement efforts.

Although mining falls under the Exclusive Legislative List, Dr Alake introduced a principle of cooperative federalism, allowing states to apply for mining licenses and operate as limited liability companies. This has spurred joint venture partnerships and investments in states including Nasarawa, Kaduna, Oyo, and the Federal Capital Territory.

“Several lithium factories are now springing up, a $400 million rare earth metals plant is in the offing, and close to $1.5 billion in foreign direct investment has been attracted to the sector since 2023,” Tomori said.

Nigeria, on the continental stage, Dr Alake’s push for local value addition—making processing or refining mandatory before export—has caught continental attention. This led to the establishment of the Africa Minerals Strategy Group (AMSG), with Dr Alake unanimously elected as its pioneer chairman.

“This recognition positions Nigeria at the forefront of Africa’s mining sector renaissance,” Tomori noted.

The Ministry also launched the Nigeria Minerals Decision Support System (NMRDSS), a web-based platform providing geoscientific and geo-economic data, interactive mapping, and infrastructure information to investors.

“Though unprecedented, the projected ₦70 billion revenue is still a drop in the ocean given the sector’s vast potential.

“We are confident that in 2026, revenues will soar even higher as reforms deepen and investments mature, making solid minerals a major contributor to Nigeria’s GDP,” he said.