Nigeria’s solid minerals sector has witnessed a remarkable revenue surge, climbing from N16 billion to an anticipated N70 billion under President Bola Tinubu’s administration. This significant boost is attributed to strategic reforms implemented by the Minister of Solid Minerals, Dr. Dele Alake, as highlighted in a recent end-of-year statement. The sector’s revenue jumped from N16 billion in 2023 to N38 billion in 2024, with projections indicating it will surpass N70 billion. Dr. Alake has successfully redirected global attention to Nigeria’s mining potential, driven by a comprehensive 7-point agenda. Key reforms included the revocation of over 1,600 mining licenses for non-payment and the cancellation of 924 dormant licenses to attract serious investors. Guidelines for Community Development Agreements were revised, making host community consent a mandatory part of the licensing process. To combat illegal mining, the Mining Marshals were established in 2024, leading to the apprehension of over 300 illegal miners, with approximately 150 currently undergoing prosecution and 98 illegal mining sites recovered. Nationwide satellite surveillance of mining sites is scheduled to be implemented in 2026 to enhance the capabilities of the Mining Marshals. While mining falls under the Exclusive legislative list, the minister creatively fostered cooperative federalism, encouraging states to obtain mining licenses and operate as Limited Liability Companies. This collaborative approach has resulted in significant joint venture partnerships and investments in states like Nasarawa, Kaduna, Abuja, and Oyo. The sector is now seeing the emergence of lithium factories, with a $400 million rare earth metals plant planned and an estimated $1.5 billion in Foreign Direct Investment attracted since 2023. Dr. Alake’s advocacy for local value addition, mandating the processing or refining of minerals before export, has gained continental recognition, leading to the formation of the Africa Minerals Strategy Group (AMSG), with him elected as its pioneer chairman. This highlights Nigeria’s leading role in the continent’s mining renaissance. To improve the ease of doing business, the Nigeria Minerals Decision Support System (NMRDSS) was launched. This web-based platform provides investors with comprehensive geo-scientific and geo-economic data on Nigeria’s mineral resources, including interactive mapping and infrastructure details. The minister aims to further solidify these gains in 2026, with solid minerals expected to become a major contributor to Nigeria’s Gross Domestic Product (GDP). What is the Nigeria Minerals Decision Support System? The Nigeria Minerals Decision Support System (NMRDSS) is a web-based platform designed to attract investment by serving as a central repository of geo-scientific and geo-economic data on Nigeria’s mineral resources, featuring interactive mapping and infrastructure details. The ongoing reforms and increased investment indicate a positive trajectory for Nigeria’s solid minerals sector. The focus on local value addition and collaborative federalism is paving the way for sustainable growth and increased revenue generation. The successful implementation of initiatives like the Mining Marshals and the NMRDSS demonstrates a commitment to transparency and efficiency in the sector. This strategic approach is positioning Nigeria as a key player in the global mining landscape. The projected revenue figures are a testament to the effectiveness of the current administration’s policies. Further development in areas like rare earth metals and lithium processing is expected to diversify the sector’s output. The establishment of the AMSG underscores Nigeria’s leadership in shaping African mining policy. The commitment to data accessibility through the NMRDSS will empower both local and international investors. The sector’s growth is directly contributing to Nigeria’s economic diversification efforts. The minister’s vision for 2026 aims to consolidate these achievements and elevate the sector’s contribution to the national GDP. The collaborative efforts with state governments are proving to be a successful model for resource development. The focus on combating illegal mining is crucial for ensuring responsible and sustainable resource extraction. The positive impact of these reforms is already being felt across various states involved in mining ventures. The future looks promising for Nigeria’s solid minerals industry, with continued investment and strategic management.
