Sector rebounds under Tinubu administration as licence clean-up, anti-illegal mining drive attract fresh investment
Nigeria’s solid minerals sector is on course for a major revenue leap, with earnings projected to reach ₦70 billion in 2025, up from ₦38 billion in 2024, according to the Federal Ministry of Solid Minerals Development.
The projection was disclosed on Tuesday by Segun Tomori, Special Assistant on Media to the Minister of Solid Minerals Development, Dr Dele Alake, who said the surge reflects sweeping reforms introduced since the start of the President Bola Ahmed Tinubu administration.
According to Tomori, revenue from the sector has grown sharply in just three years, from ₦16 billion in 2023 to ₦38 billion in 2024, with collections now expected to more than double in 2025.
Licence revocations, tougher enforcement drive growth
Tomori attributed the turnaround to a series of decisive policy actions under Alake’s leadership, anchored on the ministry’s seven-point reform agenda.
He said the ministry revoked 1,633 mining licences in late 2023 over non-payment of annual service fees, followed by the cancellation of 924 dormant licences in early 2024, a move aimed at freeing up the sector for credible and serious investors.
In addition, guidelines for Community Development Agreements (CDAs) were revised to make the consent of host communities a mandatory requirement for mining licence applications.
Illegal mining, long regarded as one of the sector’s biggest challenges, is also being confronted through the creation of mining marshals in 2024.
According to Tomori, more than 300 illegal miners have been arrested, 150 cases are currently under prosecution, and 98 illegal mining sites have been recovered within just over a year.
To further strengthen enforcement, the ministry plans to deploy nationwide satellite surveillance of mining locations in 2026, significantly expanding the operational reach of the mining marshals.
States enter mining through cooperative model
Although mining falls under the exclusive legislative powers of the Federal Government, Tomori said the minister introduced a cooperative federalism approach, encouraging states to participate by applying for mining licences through limited liability companies.
He said the strategy has already produced results, with several states entering joint venture partnerships that have attracted investments in Nasarawa, Kaduna, the Federal Capital Territory, Oyo, and other locations.
FDI inflows, lithium plants and rare earth projects
The reforms have also begun to reshape Nigeria’s mining investment landscape. Tomori disclosed that lithium processing facilities are emerging across the country, while a $400 million rare earth metals processing plant is currently in the pipeline.
He added that the sector has attracted an estimated $1.5 billion in foreign direct investment (FDI) since 2023.
Continental influence and digital tools
Tomori said Nigeria’s push for local value addition in mineral exports has gained continental attention, leading to the establishment of the Africa Minerals Strategy Group (AMSG) following sustained advocacy by the minister.
The ministry has also launched the Nigeria Minerals Decision Support System (NMRDSS), a web-based platform that provides investors with interactive maps, geological data, and infrastructure information to improve transparency and ease of doing business.
Looking ahead
With revenue expected to exceed ₦70 billion in 2025, the ministry plans to deepen reforms in 2026, positioning the solid minerals sector as a key contributor to Nigeria’s GDP and reducing the economy’s long-standing dependence on oil.
Tomori said the sector’s vast untapped potential, combined with ongoing reforms, places it firmly on a growth trajectory in the coming years.
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