Nigeria is taking major steps to transform its mining sector from small-scale, informal activities into a well-organized industrial industry. The Minister of Solid Minerals Development, Dr. Dele Alake, explained that this shift is part of President Bola Tinubu’s Renewed Hope Agenda, which aims to strengthen the economy and attract investment.
According to the minister, the country is no longer focused on simply extracting and exporting raw minerals. Instead, the goal is to process these resources locally and create more value within Nigeria. This change is already showing results, with over $800 million invested in mineral processing and ₦68.1 billion generated as revenue in 2025.
Nigeria is rich in natural resources, with about 44 commercially viable minerals such as gold, lithium, and iron ore. However, for years, the sector struggled with poor organization, low investor confidence, and limited processing capacity. Large quantities of minerals were extracted, but little effort was made to refine or add value before export.
To fix these issues, the government has introduced several reforms. These include updating existing mining laws, improving how mining licenses are managed, and launching a digital system known as the eMC+ platform. Another key policy now requires mining companies to include plans for processing minerals locally before receiving licenses.
The minister emphasized that Nigeria will no longer operate a “pit-to-port” system, where raw materials are simply dug up and shipped abroad. Instead, the country is focusing on building industries around these resources.
These reforms have attracted significant investments. Some of the major projects include a $600 million lithium processing plant, a $200 million refinery near Abuja, and another $50 million lithium facility in the Federal Capital Territory. Additional projects include a $600 million mining development in Nasarawa State and a $1 billion iron ore-to-steel project in Kogi State. Altogether, these investments exceed $2 billion as of May 2025.
Alongside these developments, the government is also working to improve the structure of mining operations at the local level. Many small mining groups currently operate as cooperatives, but they often lack proper equipment and funding. To address this, there are plans to merge smaller groups into larger cooperatives with between 2,500 and 5,000 members in each local government area.
This strategy is expected to reduce costs, increase productivity, and make it easier for miners to access modern equipment and financial support. It will also help bring illegal mining activities under control and reduce environmental damage.
In addition, the initiative aims to create job opportunities for thousands of young people, especially in rural mining communities. Experts have called for trained professionals such as geologists, mining engineers, and safety specialists to be involved in managing these larger cooperatives.
