Nigeria’s solid minerals sector is undergoing a revival, driven by the Tinubu administration’s strong focus on local value addition and tighter licensing regulations. These reforms attracted over $800 million in processing projects in the past year.
The sector’s revenue skyrocketed to N38 billion in 2024, a sharp rise from N6 billion the previous year, despite receiving just 18% of its N29 billion budgeted allocation.
The Minister of Solid Minerals Development, Dr. Dele Alake disclosed these figures in an exclusive interview for a State House documentary commemorating President Tinubu’s second anniversary.
Alake highlighted a surge in investor confidence driven by sweeping reforms in the mining sector.
Key projects include a $600 million lithium processing plant near the Kaduna-Niger border, set for commissioning this quarter, and a $200 million lithium refinery near Abuja, nearing completion.
Two additional processing plants in Nasarawa are on track for commissioning before Q3 2025.
“These investments follow the administration’s insistence that no miner gets a license without a clear local processing plant. The days of exporting raw minerals from pit to port are over.
“When we resumed, the entire sector generated N6 billion annually. By the end of 2024, we hit N38 billion. And this was with just 18% of our N29 billion budgetary allocation released. It shows how effective our policy framework has been,” Dr. Alake said.
In the first quarter of 2025 alone, the Mining Cadastral Office and the Mines Inspectorate generated ₦6.9 billion and ₦7 billion in revenue, respectively, according to the Minister.
He expressed optimism that 2025 would be a record-breaking year for the mining sector. He also noted that the government has allocated ₦1 trillion in the current budget for mineral exploration, aimed at producing 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 touch your sector without credible data.
“We are now focused on turning our mineral wealth into domestic economic value—jobs, technology, and manufacturing,” he stated.
As part of his seven-point agenda, Alake highlighted ongoing efforts to tackle illegal mining and integrate artisanal miners into the formal sector.
He reported that over 300 illegal miners were arrested last year, with 150 prosecutions underway and nine convictions secured, including some involving foreign nationals.
“We adopted both kinetic and non-kinetic strategies. While enforcement has yielded results through the Mining Marshals, we’re also empowering locals by formalizing them into cooperatives, making them eligible for finance and revenue sharing,” he noted.
He further stated that over 250 mining cooperatives have been set up nationwide to transition informal miners into the formal sector.
Nigeria, he added, now leads the newly established African Mineral Strategy Group, a continental alliance aimed at promoting local value addition and securing more equitable mineral trade agreements across Africa.
“This was a direct result of Nigeria’s position at the 2024 Future Minerals Conference in Riyadh. We’re leading Africa in saying: no more raw material exports without domestic beneficiation,” he added.
