On assumption of office in 2023, President Bola Tinubu set an ambitious goal to grow Nigeria’s Gross Domestic Product (GDP) to one trillion dollars by 2030, with economic diversification at the core of his plan.
Among the sectors identified to drive this transformation, the solid minerals sector stands out as a promising powerhouse for revenue generation.
Analysts say countries like Nigeria, which possess the seven critical minerals essential for the global energy transition, have a unique opportunity to harness them for local economic growth.
They argue that achieving this will require bold sector reforms and stronger regulations to formalise and sanitise this industry, to ensure that it contributes effectively to national development.
According to them, aconducive environment, complete with security, clear policies and mining incentives, will naturally attract investors to operate and grow their businesses in the sector.
In line with this approach, the Federal Government introduced reforms such as the Value Addition of Minerals Policy and the “use-it-or-lose-it” principle for mineral title licences.
Other measures include a two-pronged approach combining coercive and persuasive strategies to curb illegal mining and secure mining sites nationwide, as well as the introduction of a new mining rate regime, among others.
These interventions, government officials say, have contributed to a sharp rise in revenue under the current administration.
According to the Minister of Solid Minerals Development, Dr Dele Alake, earnings in the sector climbed from N8.6 billion in 2022 to N38 billion in 2024.
Alake said that as of Dec. 12, 2025, the sector had generated over N50 billion revenue surge, as mining cadastre goes digital.
This includes revenue from the Mining Cadastre Office (MCO), which rose to N30 billion in 2025 from N12 billion in 2024.
He said that sector reforms, driven by digital tools and new policies, had positioned the ministry for threefold revenue growth across its agencies.
“That is the trajectory we have set for the sector. Mines inspectorate revenue is up, and other revenue departments have also improved.
“Last year, we recorded about N38 billion. This year, we have crossed N50 billion already and we are still counting,” he said.
The minister said that in the last three years, the Federal Government had galvanised domestic reforms and policy initiatives to transform the mining sector.
“We are positioning Nigeria to compete globally and to be recognised as the mining investment destination of choice, leveraging on our vast mineral endowments, our improving regulatory environment and our commitment to sustainable development,” he said.
Alake said that the ministry had pursued reforms aimed at improving transparency, de-risking investment and unlocking value across the mineral value chain.
According to him, since when Tinubu’s administration assumed office, Chinese companies have invested 1.3 billion dollars in Lithium processing in Nigeria, a feat linked to sector reforms by stakeholders.
In December 2025, at the “Resourcing Tomorrow” Annual Exhibition and Conference in London, the minister told global mining companies that the country was ready for investment in the sector.
He said that investors should take advantage of seamless profit transfers and duty waivers on imported mining machinery.
He said that Nigeria had made significant strides in its mineral sector.
Alake highlighted investment breakthroughs in mineral processing, including over two billion dollars in inflows to lithium and rare earth ore projects over the past two years.
He said that the foreign direct investments were the outcomes of the policy on value addition being driven by Federal Government to stop pit to port export and stimulate local beneficiation.
He said that in the outskirts of Abuja, construction was underway for 50 million dollars Lithium processing plant.
According to him, this is the first in a network of industrial clusters that will extend through Nasarawa, Kogi, Kwara and Ebonyi.
He said that in November 2025, Nigeria achieved a major milestone in rare earth ore processing with the groundbreaking of the 400 million dollars Hasetins Group plant.
“It is expected to be ready in 15 months. Also, a multi- billion-dollar iron ore to steel project, using the latest technology, is in the pipeline,” he said.
Other stakeholders also acknowledged growth in the sector and its contribution to Nigeria`s economic development.
Mr Dele Ayankale, the National President of the Miners Association of Nigeria (MAN) said that Nigeria’s gold, limestone and bitumen production had increased, contributing significantly to local economic growth and job creation.
However, the Nigeria Extractive Industries Transparency Initiative (NEITI) says the sector’s contribution to GDP remains minimal, despite its estimated potential of about 750 billion-dollar worth of solid minerals underground.
Some CSOs have also insisted that the sector recorded losses in revenue over the years due to illegal mining by foreign companies.
The Renevlyn Development Initiative (RDI) linked reports of revenue leakages in the mining sector to illegal operations of Chinese companies in Nigeria.
RDI said this in its publication “Silent Conquest: The Chinese Infiltration of Nigeria’s Solid Minerals Sector”.
The report showed that these operations threatened Nigeria’s efforts to diversify its economy and boost revenue from mineral wealth.
According to the report, the consequences of this unregulated activity extend beyond economic losses to include environmental degradation in host communities and the displacement of local farmers.
Similarly, stakeholders have decried the low patronage of Nigeria`s Barite by International Oil Companies operating in the country.
They described the situation as a breach of the Nigerian Oil and Gas Industry Content Act of 2010, depriving the country of revenue including job creation opportunities.
Experts have also urged the Federal Government to support indigenous small scale mining companies to access modern mining equipment for their operations while introducing measures to attract international investors.
They also said that the solid minerals sector remained constrained by limited opportunities to unlock sustainable financing for its development.
Mr Adeniran Ajibade, President of the Gemstone Miners and Marketers Association of Nigeria (GMMAN), described mining financing as high risk.
Ajibade, however, said that the risk associated with funding trading and processing activities, including value addition, could be lower.
Meanwhile, in December 2025, the Ore Reserve Development Forum (ORDF), in collaboration with the Solid Minerals Development Fund (SMDF), initiated efforts to put in place a robust financing framework.
The framework is aimed at fully unlocking the potential of Nigeria’s solid minerals sector.
Stakeholders caution that challenges such as infrastructure gaps, security concerns in some mining locations, and the need for sustained investment in skills development must be addressed to sustain the sector’s growth momentum.
Looking ahead to 2026, the Federal Government reiterated its commitment to consolidate on reforms, strengthen enforcement and promote private-sector participation.
This is to ensure that the solid minerals sector remains a reliable source of revenue and economic growth.
