Revenue from Nigeria’s solid minerals sector has risen sharply under Minister Dr Dele Alake, increasing from N16 billion in 2023 to N38 billion in 2024 and on course to surpass N70 billion in 2025, according to the Ministry of Solid Minerals Development.
The ministry attributes the gains to a series of reforms and policy measures introduced since Dr Alake took office. A seven-point agenda aimed at improving governance, attracting credible investors and restoring confidence in the sector has been central to the turnaround, the minister’s media aide, Segun Tomori, said in a statement in Abuja.
Nigeria solid minerals reforms strengthen investment appeal
Key among the reforms was the revocation of licences held by non-performing operators. In late 2023, 1,633 licences were revoked for defaulting on annual service fees, and a further 924 dormant licences were revoked in early 2024. The ministry says freeing up the licence register has opened opportunities for serious local and foreign investors.
The immediate impact has included the emergence of lithium processing facilities across the country and plans for a $400 million rare earth metals plant. Tomori estimated that close to $1.5 billion in foreign direct investment has flowed into the sector since 2023, a clear sign that the reforms have begun to bear fruit.
To deepen local benefit and reduce raw exports, the government is pushing for value addition in-country. This approach gained continental traction, leading to the formation of the Africa Minerals Strategy Group, whose members unanimously elected Dr Alake as its inaugural chairman — a move the ministry said affirms Nigeria’s leadership role in Africa’s mining agenda.
The ministry has also revised the guidelines for Community Development Agreements so that host communities must give consent as part of the licence application process. Officials say this change is intended to ensure that local populations share in the benefits of mining activity and to reduce social friction.
Illegal mining has been another priority. A special-purpose mining marshals unit was established in 2024 and has, in just over a year, apprehended more than 300 illegal miners, with around 150 facing prosecution and 98 illegal mining sites recovered. Nationwide satellite surveillance of mining sites is planned to begin in 2026 to enhance monitoring and enforcement.
The minister also introduced a cooperative federalism model that allows states to apply for mining licences and operate as limited liability companies. Several states have already formed joint ventures and attracted investments in regions such as Nasarawa, Kaduna, Abuja and Oyo.
On the technical front, the launch of the Nigeria Minerals Decision Support System — a web-based platform providing geo-scientific and geo-economic data, interactive maps and infrastructure information — is designed to simplify due diligence for investors and improve the ease of doing business in the sector.
Officials acknowledge that while crossing the N70 billion revenue mark is a milestone, it represents only a fraction of the sector’s potential. The federal government has signalled its intent to consolidate these gains through further reforms in 2026, with the goal of making solid minerals a major contributor to Nigeria’s gross domestic product.
Key Takeaways:
- Nigeria solid minerals reforms have helped sector revenue rise from N16bn in 2023 to N38bn in 2024, with a N70bn target for 2025.
- Revocation of dormant licences and stricter enforcement attracted investors and about $1.5bn in FDI, with lithium plants and a $400m rare-earth project announced.
- Measures include community consent for licences, special mining marshals apprehending illegal miners, and plans for satellite surveillance from 2026.
- Cooperative federalism has enabled state joint ventures and regional leadership through the Africa Minerals Strategy Group.
