Nigeria’s solid minerals sector is witnessing a historic transformation, with revenues soaring by an impressive 337 per cent under the current administration. According to the latest figures released by the Ministry of Solid Minerals Development, the sector’s revenue is projected to exceed N70 billion by the end of 2025—a massive leap from the N16 billion recorded just two years ago.
This growth is no accident. Segun Tomori, the Special Assistant on Media to the Minister of Solid Minerals Development, Dr. Dele Alake, attributes this surge to a series of bold, strategic reforms aimed at cleaning up the industry and making it attractive to global investors. Central to this success is Alake’s “seven-point agenda,” which prioritizes transparency, local value addition, and a zero-tolerance policy toward inactive or non-compliant operators.
In a move to sanitize the sector, the ministry revoked 1,633 mining licenses in late 2023 for failure to pay annual service fees. This was followed by the withdrawal of another 924 dormant licenses in early 2024, effectively clearing the way for serious players. Furthermore, new guidelines for Community Development Agreements (CDAs) have been established, ensuring that host communities are no longer bystanders but active participants whose consent is vital for any mining operation to proceed.
A significant part of this cleanup involves the fight against illegal mining. Since the inauguration of the “Mining Marshals” in early 2024, the government has intensified its crackdown on unregulated sites. In just over a year, more than 300 illegal miners have been arrested, with 150 currently facing prosecution and 98 sites successfully reclaimed. Looking ahead to 2026, the ministry plans to deploy nationwide satellite surveillance to further track and eliminate illegal activities in real-time.
Beyond enforcement, the ministry has also focused on fostering a better relationship between the federal and state governments. By introducing a “cooperative federalism” approach, states are now encouraged to apply for their own mining licenses and operate as limited liability companies. This policy has already birthed successful joint ventures in Nasarawa, Kaduna, Oyo, and the Federal Capital Territory, bridging the gap between national policy and local implementation.
The results of these reforms are already visible on the ground. Lithium processing plants are appearing across the country, and a landmark $400 million rare-earth metals facility is currently in development in Nasarawa State. Since 2023, it is estimated that nearly $1.5 billion in foreign direct investment has been drawn into the sector. Nigeria’s leadership in this space was recently recognized on the continental stage, with Dr. Dele Alake being elected as the pioneer chairman of the Africa Minerals Strategy Group.
While the N70 billion revenue mark represents a record high, officials at the ministry believe it is still only a fraction of what is possible. 2026 will be a year of consolidation, with the government aiming to turn solid minerals into a cornerstone of Nigeria’s Gross Domestic Product (GDP).
