The Bola Tinubu administration’s recent policy to enhance local value creation and implement stricter licensing in Nigeria’s solid minerals sector led to over $800 million in processing investments last year, according to the Federal Government.
Presidential spokesperson Bayo Onanuga reported that this sector generated more than ₦38 billion in revenue in 2024, a significant increase from ₦6 billion the previous year, despite receiving only 18% of its ₦29 billion budget allocation.
During an interview for a documentary celebrating President Tinubu’s second anniversary, Minister of Solid Minerals Development, Dele Alake, noted that the sector has attracted heightened investor interest thanks to the administration’s reforms.
He highlighted the upcoming commissioning of a $600 million lithium processing plant near the Kaduna-Niger border, a nearly completed $200 million lithium refinery near Abuja, and two additional processing facilities in Nasarawa expected to be operational before Q3 2025.
“These investments stem from our policy requiring miners to have a local processing plant to obtain a license. The era of exporting unprocessed minerals is over,” Alake emphasized.
He mentioned that when the administration took office, the sector generated only ₦6 billion annually, but by the end of 2024, it had risen to ₦38 billion—even with just 18% of the ₦29 billion budget being utilized, demonstrating the effectiveness of their policies.
The Minister reported that in the first quarter of 2025, two regulatory bodies—the Mining Cadastral Office (MCO) and the Mines Inspectorate—together collected ₦6.9 billion and ₦7 billion in revenue.
He anticipates this year will set a record for the sector, with the current budget allocating ₦1 trillion for mineral exploration aimed at generating internationally recognized geological data.
“Exploration is crucial. Upon our arrival, Nigeria had invested only $2 million in exploration, whereas Sierra Leone spent $40 million, Côte d’Ivoire $148 million, and South Africa over $300 million. Serious investors won’t engage without reliable data,” he said.
“Our aim now is to transform our mineral assets into domestic economic benefits—jobs, technology, and manufacturing,” he added.
As part of a seven-point plan, Alake is taking decisive measures against illegal mining and working to formalize artisanal mining activities.
He disclosed that over 300 illegal miners were apprehended last year, with 150 prosecutions in process and nine convictions secured, including against foreign nationals.
“Our approach includes both forceful and supportive measures. While enforcement through the Mining Marshals has proved effective, we are also empowering locals by incorporating them into cooperatives, making them eligible for financing and profit-sharing,” he stated.
To integrate informal miners into the formal economy, more than 250 mining cooperatives have been established nationwide.
Alake noted that Nigeria now leads the newly established African Mineral Strategy Group, which aims to promote local value addition and fairer mineral trade across the continent.
“This leadership role followed Nigeria’s participation in the 2024 Future Minerals Conference in Riyadh, where we advocated for the end of raw material exports without domestic processing.”
Reflecting on the growing investor confidence, Alake mentioned that key global players, including officials from the UK, US, Saudi Arabia, and the UAE, are showing interest in Nigeria’s lithium and other essential minerals.
“I was personally invited by the former British Deputy Prime Minister to discuss their interest in Nigerian lithium,” he said.
“The U.S. is also seeking alternatives to China and views Nigeria as a promising option.”
With new revenue sources, foreign direct investment, stricter regulations, and a clear developmental strategy, Nigeria’s solid minerals sector is now a cornerstone of the Tinubu administration’s economic diversification efforts.
“Nigeria is enjoying unprecedented progress in the solid minerals sector. We are rebuilding trust, gathering data, enforcing regulations, and delivering value to Nigerians from their natural resources.
The mining cadastral office, responsible for licensing and processing applications, received over 10,000 applications from both local and foreign investors this quarter alone.
“This highlights the vibrancy of the sector. The dynamism we have injected into this area is unmatched by previous administrations before President Tinubu’s leadership,” he concluded.
