Nigeria’s solid minerals sector attracted over $800 million in foreign investments and generated ₦38 billion in revenue in 2024, a significant leap from just ₦6 billion the previous year, according to the Minister of Solid Minerals Development, Dr. Dele Alake.
Speaking in a feature interview for an upcoming State House documentary marking President Bola Tinubu’s second anniversary, Alake attributed the gains to reforms introduced by the current administration, including a mandatory local value addition policy and a more rigorous licensing framework.
“When we resumed, the entire sector generated ₦6 billion annually. By the end of 2024, we hit ₦38 billion. And this was with just 18 percent of our ₦29 billion budgetary allocation released,” Alake said. “That shows how effective our policy framework has been.”
Key Investments Take Shape
Alake revealed that the sector’s growth is being driven by major processing projects, including:
- A $600 million lithium processing plant near the Kaduna-Niger border, expected to be commissioned in Q2 2025.
- A $200 million lithium refinery near Abuja, now nearing completion.
- Two additional lithium processing facilities in Nasarawa State, scheduled for commissioning before the end of Q3 2025.
“These investments are a direct result of our insistence that no miner gets a license without a clear plan for local processing. The days of pit-to-port raw mineral export are over,” the Minister said.
Exploration, Revenue, and Data-Driven Growth
According to Alake, in Q1 2025 alone, two regulatory agencies—the Mining Cadastral Office (MCO) and the Mines Inspectorate—generated ₦6.9 billion and ₦7 billion, respectively.
He disclosed that the federal government has allocated ₦1 trillion for mineral exploration in the 2025 budget, a strategic move aimed at producing internationally certified geological data to attract serious investors.
“When we came in, Nigeria had only spent $2 million on exploration. For context, Sierra Leone had spent $40 million, Côte d’Ivoire $148 million, and South Africa over $300 million. Investors need credible data before making financial commitments,” Alake explained.
Cracking Down on Illegal Mining
The Minister also highlighted ongoing efforts to combat illegal mining and formalize artisanal activities. In 2024 alone, over 300 illegal miners were arrested, with 150 prosecutions currently underway and nine convictions secured, including foreign nationals.
Beyond enforcement, the Ministry has registered more than 250 mining cooperatives nationwide, enabling informal miners to access finance and revenue-sharing schemes.
“We’ve adopted a two-pronged approach — enforcement through Mining Marshals and empowerment through cooperative formalisation,” he said.
Nigeria Takes Leadership Role in Africa
Alake also announced that Nigeria now chairs the African Mineral Strategy Group, a new continental bloc pushing for local beneficiation and fairer trade terms for mineral resources. The development followed Nigeria’s strong advocacy at the 2024 Future Minerals Conference in Riyadh.
“We’re leading the charge across Africa to say: no more exporting raw materials without domestic processing,” Alake said.
Rising Global Interest
According to the Minister, international interest in Nigeria’s mining sector is on the rise. Delegations from the United Kingdom, United States, Saudi Arabia, and the UAE have expressed keen interest in lithium and other critical minerals.
“The former British Deputy Prime Minister invited me to Downing Street to discuss lithium investment opportunities. The U.S. also sees Nigeria as a key alternative in reducing its reliance on China,” he revealed.
A New Era for Nigeria’s Mining Industry
Alake said the sector is now central to the Tinubu administration’s economic diversification agenda, pointing to over 10,000 new license applications received by the Mining Cadastral Office this quarter alone.
“Nigeria has not had it this good in the solid minerals sector,” Alake stated. “We’re restoring investor confidence, building credible data systems, enforcing the law, and creating long-term value for Nigerians.”
With tightening regulations, increased exploration funding, and growing global interest, the Minister said Nigeria’s solid minerals sector is now on a path toward becoming a major contributor to national GDP and job creation.
For further updates on Nigeria’s economic transformation under the Tinubu administration, follow us on [The Ameh News or Social Media Handle].
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