Solid minerals reforms boost Nigeria’s revenue from ₦16bn to ₦70bn

Revenue from Nigeria’s solid minerals sector is projected to rise to more than ₦70 billion in 2025, a dramatic jump from ₦16 billion in 2023 and ₦38 billion in 2024.

According to the Ministry of Solid Minerals Development, the surge is tied to major reforms introduced under President Bola Ahmed Tinubu and driven by the Minister of Solid Minerals Development, Dr. Dele Alake.

Segun Tomori, the minister’s media aide, said the gains are the result of determined leadership and decisive policy actions.

He noted that Dr. Alake rolled out a seven-point reform plan when he took office.

Among the actions taken were the revocation of 1,633 licenses in 2023 and another 924 inactive licenses in 2024, to free space for credible investors.

Rules guiding Community Development Agreements were also updated to ensure host communities must give consent before operations begin.

To curb illegal mining, the government created Mining Marshals in 2024.

So far, more than 300 illegal miners have been arrested, around 150 cases are in court, and 98 illegal sites have been recovered.

A nationwide satellite monitoring system is expected to begin in 2026.

Despite mining being under federal control, Dr. Alake introduced a cooperative approach that lets states obtain licenses and participate as corporate partners.

This has encouraged investments in areas such as Nasarawa, Kaduna, Oyo and the Federal Capital Territory.

Tomori added that lithium processing facilities are emerging, plans for a $400 million rare-earth plant are underway, and the sector has attracted nearly $1.5 billion in foreign investment since 2023.

Nigeria’s advocacy for value addition — requiring minerals to be processed locally before export — also helped form the Africa Minerals Strategy Group (AMSG), with Dr. Alake chosen as its first chairman.

The ministry has further launched the Nigeria Minerals Decision Support System, an online platform that provides maps, geological data and investment information.

Tomori said that while the expected ₦70 billion is impressive, it represents only a fraction of what the sector can deliver.

He expressed confidence that revenues will continue rising in 2026 as ongoing reforms take root and new investments mature.