Nigeria’s mining reforms yield $47m in revenue, attract $1.5bn FDI

Nigeria’s Ministry of Solid Minerals Development has recorded a 337 per cent increase in revenue, rising from N16 billion in 2023 to over N70 billion in 2025, under the leadership of Minister Dr Dele Alake.

The development was disclosed by the Minister’s Special Assistant on Media, Segun Tomori, who attributed the growth to sweeping reforms and strategic policies aimed at repositioning the mining sector and attracting global investment.

According to Tomori, sector revenue rose to N38 billion in 2024 and is projected to exceed N70 billion by the end of 2025, following the implementation of Alake’s seven-point agenda focused on transparency, investor confidence, and local value addition.

As part of the reforms, the ministry revoked 1,633 mining licences in late 2023 for non-payment of service fees and an additional 924 dormant licences in early 2024 to free up space for serious investors. Guidelines for Community Development Agreements were also revised to require host community consent before licence approvals.

To tackle illegal mining, mining marshals were established in 2024, leading to the arrest of over 300 illegal miners, with about 150 currently facing prosecution and 98 illegal sites recovered. Nationwide satellite monitoring of mining sites is expected to begin in 2026.

Tomori said the minister also introduced cooperative federalism, enabling states to acquire mining licences through limited liability companies. This has resulted in joint ventures in Nasarawa, Kaduna, Oyo, and the Federal Capital Territory.

He added that lithium processing plants are emerging nationwide, a $400 million rare-earth metals facility is planned, and about $1.5 billion in foreign direct investment has been attracted since 2023.

At the continental level, Nigeria’s push for local value addition led to the formation of the Africa Minerals Strategy Group, which elected Alake as its pioneer chairman.

Tomori noted that while the revenue growth is unprecedented, it represents only a fraction of the sector’s potential, adding that reforms will be consolidated in 2026 to make solid minerals a major contributor to Nigeria’s GDP.

Source: Naija News Channel