Nigeria’s solid minerals sector has achieved a remarkable jump in revenue, recording a 337% increase to over ₦70 billion in 2025, compared with just ₦16 billion in 2023, reflecting rapid transformation under government-led reforms.
The surge, disclosed by Segun Tomori, Special Assistant on Media to the Minister of Solid Minerals Development, shows the revenue expanding from ₦16 billion in 2023 to ₦38 billion in 2024, and projected to surpass ₦70 billion by the end of 2025.
This dramatic growth is largely attributed to a wide range of reforms initiated by the Ministry of Solid Minerals Development under the leadership of Dr. Dele Alake, which have improved governance, boosted investor confidence, and attracted fresh capital into the mining industry.
The ministry’s seven-point agenda has been central to this progress, with a strong focus on transparency, investor confidence, local value addition, and regulatory reforms. One key strategy was the revocation of 1,633 licences in late 2023 for non-compliance and a further 924 dormant licences in early 2024, which helped create room for serious investors ready to develop Nigeria’s mineral resources responsibly.
Efforts to tackle illegal mining, a significant challenge to the sector, have also intensified with the deployment of mining marshals, resulting in more than 300 arrests, about 150 prosecutions, and recovery of 98 illegal mining sites over the past year. The ministry plans to roll out nationwide satellite surveillance in 2026 to enhance monitoring and enforcement further.
On federal-state relations, the ministry has encouraged cooperative federalism by enabling states to apply for licences and operate mines through limited liability companies. This approach has led to joint ventures in states such as Nasarawa, Kaduna, Oyo, and the Federal Capital Territory.
Another major development emerging from this policy environment is the establishment of lithium processing plants across Nigeria, signaling growth in high-value mineral processing. Additionally, a $400 million rare-earth metals facility is reportedly in the pipeline, while about $1.5 billion in foreign direct investment has entered the sector since 2023.
The revenue boom, however impressive, still represents a small share of the economy’s full potential. Ministerial aides emphasize that reforms will continue in 2026 to position solid minerals as a significant contributor to Nigeria’s Gross Domestic Product (GDP).
The government’s dedication to diversifying the economy beyond oil has been consistent. The Federal Government announced a historic ₦1 trillion investment in the solid minerals sector as part of the 2025 budget to enable geological surveys, exploration, and infrastructure development.
Nigeria’s mining reforms have also shifted the industry away from exporting raw materials “from pit to port.” Instead, policies now encourage local processing, which has drawn global mining firms into setting up operations within the country and contributed to rising foreign investments.
Economists say this shift toward domestic value addition is crucial for expanding Nigeria’s export base, creating jobs, and boosting foreign exchange earnings, key goals in the country’s broader economic transformation plan. This momentum is expected to support other economic sectors and help reduce reliance on volatile oil revenues.
The solid minerals sector’s vibrant growth reinforces Nigeria’s push toward economic diversification, a strategy that has drawn attention from investors and global partners and underscores the untapped potential of the country’s natural resources.
The surge to ₦70bn in minerals revenue strengthens Nigeria’s economic diversification efforts, providing a non-oil revenue stream that can cushion fiscal pressures from fluctuating oil markets. Enhanced mineral exports and value-added processing boost foreign exchange earnings, support industrial development, and create new jobs, crucial levers for sustainable growth and macroeconomic stability.
