Nigeria’s solid minerals sector remitted a total of 63.92 billion naira into the Federation Account between January and November 2025, highlighting the sector’s rising fiscal importance as well as the volatility that continues to characterise its revenue contribution.

Official remittance records presented to the Federation Account Allocation Committee in December showed that inflows from the sector fluctuated significantly over the eleven-month period, marked by a strong rebound in the second quarter and a moderation towards the end of the year linked to security and operational challenges.

The year began with remittances of 4.18 billion naira in January, accounting for about 6.5 per cent of the cumulative inflow. February followed with 3.78 billion naira, representing approximately 5.9 per cent of the total.

Combined, the first two months generated 7.96 billion naira, or just under 12.5 per cent of the total January to November remittance, reflecting a relatively slow start for the sector during a period often affected by logistics and financing constraints.

March recorded a further decline, with remittances dropping to 2.15 billion naira, equivalent to 3.4 per cent of total collections. This marked the weakest monthly performance of the year and reflected reduced production and export activities across several mining corridors.

By the end of the first quarter, cumulative inflows stood at 10.10 billion naira, representing just 15.8 per cent of the eventual eleven-month total, indicating that the sector’s revenue performance would be heavily weighted towards later months.

A significant turnaround occurred in April, when remittances surged to 7.88 billion naira, contributing about 12.3 per cent of the year’s total and more than tripling the March figure.

Data analysis showed that the recovery strengthened further in May, which emerged as the strongest month of the year, with 9.66 billion naira paid into the Federation Account. May alone accounted for just over 15.1 per cent of total remittances, confirming the second quarter as the peak fiscal period for the solid minerals industry.

June sustained the improved performance, though at a slower pace, with remittances of 4.75 billion naira, representing 7.4 per cent of the total. By the end of the first half of the year, aggregate inflows had reached approximately 32.34 billion naira.

This meant that about 50.6 per cent of the entire January to November remittance was generated between April and June, underscoring the outsized importance of the second quarter to overall revenue outcomes.

The third quarter opened on a stable note, with July recording remittances of 5.84 billion naira, contributing 9.1 per cent of the total. August followed with 6.23 billion naira, equivalent to 9.8 per cent, reflecting sustained mineral sales and improved compliance by operators.

September continued the positive trend, posting 7.32 billion naira, or 11.5 per cent of cumulative inflows, making it the third-best performing month of the year after May and April.

October maintained relatively high remittance levels, with 6.86 billion naira paid into the Federation Account, accounting for 10.7 per cent of the January to November total.

However, November inflows eased to 5.28 billion naira, representing about 8.3 per cent of total collections. While still substantial, this figure fell below the mid-year highs, reflecting disruptions in mining operations and logistics.

Official revenue notes attributed the late-year moderation partly to a decline in mining activities caused by a sudden rise in insecurity across parts of the country, although November’s remittance remained stronger than early-year levels and well above the March low.

“The revenue collected by MSMD into the Federation Account for the month of November 2025 is N5,277,190,149.82. The ministry recorded the sum of N3,435,213,649.82 from royalty collection, for the month under review.

“The sum of N1,841,976,500.00 was realised from fees collection in the month of November 2025. The ministry recorded a positive variance of N2,203,559,574.32 when the monthly collection is compared to the monthly target.

“However there is a negative variance of N1,579,754,256.60 when you compare the current month collection against last month collection. The decrease in collection can be attributed to decrease in mining activities due to sudden rise of insecurity across the nation,” the note to the FAAC presentation stated.

In proportional terms, five months, April, May, August, September and October, collectively accounted for approximately 59.4 per cent of the entire eleven-month inflow.

May’s remittance of 9.66 billion naira alone exceeded the combined collections of January and March, illustrating the degree of volatility that continues to define the sector.

Overall, the remittance pattern reinforces the view that while solid minerals are becoming an increasingly important source of national revenue, the sector remains highly sensitive to security conditions, infrastructure availability and the effectiveness of regulatory enforcement.