Nigeria’s Minister of Solid Minerals Development, Dele Alake, says that Nigeria attracted over $800 million in processing investments in its solid minerals sector last year.
Alake said the surge was due to the Tinubu administration’s policy shift, favouring in-country value addition and stricter licensing requirements.
According to the statement by the Special Adviser to the President on Information and Media Strategy, ,Mr. Bayo Onanuga, the mining sector revenue climbed to over ₦38 billion in 2024, up from ₦6 billion the previous year, despite the ministry receiving only 18 per cent of its ₦29 billion budget allocation.
Speaking on the achievements of President Tinubu in two years in office, Alake explained that the reforms have led to a marked increase in investor interest.
He listed the $600 million lithium processing plant located near the Kaduna – Niger border, scheduled for commissioning this quarter and the $200 million lithium refinery near Abuja is nearing completion, and two more processing facilities in Nasarawa state are expected to begin operations before the third quarter of 2025.
“These investments follow the administration’s insistence that no miner gets a licence without a clear local processing plant. The days of exporting raw minerals from pit to port are over.
“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. It shows how effective our policy framework has been,” Alake said.
He also disclosed that in the first quarter of 2025 alone, the Mining Cadastral Office and the Mines Inspectorate recorded revenues of ₦6.9 billion and ₦7 billion respectively.
Looking ahead, the minister projected that 2025 would be a landmark year for the industry as ₦1 trillion has been allocated to mineral exploration in order to generate certified geological data that meets international standards.
“Exploration is key. When we came in, Nigeria had spent just $2 million on exploration, compared to $40 million in Sierra Leone, $148 million in Côte d’Ivoire, and over $300 million in South Africa. No serious investor will touch your sector without credible data,” he stated.
“We are now focused on turning our mineral wealth into domestic economic value, jobs, technology, and manufacturing,” he added.
As part of a comprehensive reform agenda, Alake said the ministry has taken firm steps to tackle illegal mining and integrate informal miners into the formal economy.
He confirmed that over 300 illegal miners were arrested last year. Of those, 150 cases are currently being prosecuted, and nine convictions have been secured, including some involving foreign nationals.
“We adopted both kinetic and non-kinetic strategies. While enforcement has yielded results through the Mining Marshals, we’re also empowering locals by formalising them into cooperatives, making them eligible for finance and revenue sharing,” he said.
GIK/APA