How solid minerals generated N8.1bn in exploration licences, $146m investment

The federal government has recorded significant success in the solid minerals sector with the Ministry of Solid Minerals Development drawing in N8,198,492,756, through investments paid for exploratory licenses, small-scale mining licenses, and quarry leases etc.

In addition, in Q2, the ministry attracted investment worth USD146 million (about N230bn), according to the mid-term report of the Ministry.

Given the vital role of the solid minerals sector and its potential to boost the gross domestic production of the nation, the federal government under President Bola Ahmed Tinubu has given attention to the solid minerals sector which was hitherto neglected.

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This is a deliberate drive to boost the non-oil sector and diversify away from oil revenue.

 Non-oil sector at a glance

The Nigerian Export Promotion Council (NEPC) recently announced a remarkable 20.79 per cent increase in the value of the country’s non-oil exports, reaching a total of $5.456bn in 2024, adding that the amount surpassed the $4.5bn generated in 2023.

It would be recalled that President Tinubu had unveiled his plan to reposition the solid minerals sector and drive significant growth. 

The president unveiled a seven-point ‘Agenda for the Transformation of the Solid Minerals Sector for International Competitiveness and Domestic Prosperity’ which is being implemented by the Minister of Solid Minerals, Dele Alake.

The seven-point agenda captures ‘Creation of the Nigerian Solid Minerals Corporation’, ‘Joint Ventures with Mining Multinationals’, ‘Big Data on Specific Seven Priority Minerals and their deposits’, ‘30-day grace for illegal miners to join artisanal cooperatives’, ‘Minerals Surveillance Task Force and Mine Police’, ‘Comprehensive review of all mining licences’, and ‘Creation of six mineral processing centres to focus on value-added products’.

The sector has recorded notable achievements in the past two years, with revenue generation increasing dramatically from N6 billion in 2023 to N38 billion by the end of 2024, underscoring the impact of recent efforts to revitalize the industry.

According to the Minister Dele Alake,  in the first quarter of 2025, two regulatory agencies—the Mining Cadastral Office (MCO) and the Mines Inspectorate—have recorded N6.9 billion and N7 billion in revenue, respectively.

The minister projected this year to be a record-breaking one for the sector, adding that the current budget allocated N1 trillion for mineral exploration, targeted at generating internationally certified geological data.

In an interview, he said, “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.

“We are now focused on turning our mineral wealth into domestic economic value—jobs, technology, and manufacturing.”

According to the Minister, the number of jobs created in the mining sector has reached 8,293 verifiable jobs were recorded to have been created in the mining sector in 2024.

The mid-term report added, “In addition, 396 licenses were issued to entrepreneurs setting up mineral buying centres, expanding local trade of minerals and opening frontiers for further job and wealth creation in the ecosystem.

“After an initial lull, the ministry trained 450 indigenous and artisanal miners in 2024, exceeding its target in Q3 & Q4. This is in addition to empowering them with small mining equipment to ease their operations.

“These mining cooperatives were also trained on good health and safety practices in mining operations. About 750 abandoned mine sites were revalidated nationwide across the six geopolitical zones. In 2024, 4 legacy Mines Sites were reclaimed in four states across the Federation bringing the total to 58 abandoned mines sites reclaimed since inception. There were 431 Private Mineral Buying Centres (PMBC) registered while there was capturing of 588 Miners as part of efforts to formalize artisanal miners.”

The minister said Nigeria now chairs the newly formed African Mineral Strategy Group, a continental bloc focused on ensuring local value addition and fairer mineral trade deals across Africa.

“This was a direct result of Nigeria’s position at the 2024 Future Minerals Conference in Riyadh. We’re leading Africa in saying: no more raw material exports without domestic beneficiation.”

 Reflecting on the rising investor confidence, Alake noted that top global players, including UK, US, Saudi Arabia, and UAE officials, have expressed interest in Nigeria’s lithium and other critical minerals.

“The former British Deputy Prime Minister personally invited me to Downing Street to discuss their interest in Nigerian lithium,” Alake said.

The minister added that as the sector continues to grow, investor interest is surging, “The Mining Cadastral Office received over 10,000 applications in just one quarter, a clear indication that Nigeria’s solid minerals sector is becoming an attractive destination for investors.”

The growth of the solid minerals sector is also having a positive impact on other sectors of the economy. According to the special assistant on media to the minister, Segun Tomori, “The mining sector is a key driver of economic growth, and its impact is being felt across various sectors, including manufacturing, construction, and infrastructure development.”

 Targets $2bn from investments, licences in 2027

The government is poised to increase the value of local and foreign investment/licenses in the solid minerals sector to $2 Billion by 2027. 

It added, “Overall, the ministry achieved 93% of its target in the total amount of revenue generated from royalties and fees from the minerals. Particularly in Q4, the ministry scored more than 75% of its target in the quantities of minerals mined, except for lithium and coal.

“Compared to Q3 when reporting was strengthened, there was a significant increase in royalties generated from the key minerals, ranging between 16% to 3325% while the increase in the quantity of minerals mined ranged from 18% to 4791%. This is partly due to favourable weather conditions for mines operation, resolution of conflicts in some mining sites and improved security in some of the mining sites and.

“The Ministry generated more than NGN16,442,220,647 from royalties and fees in 2024; the figure may even be higher than this based on the fact that as at the time of compilation, some inputs were outstanding from CBN. While the Ministry has not met its target, there was an increase in revenue derivable from the minerals from Q1 – Q4.”

Govt must simplify licensing process- Expert

A mining expert, Dr. Kayode Bankole, observed that the government’s decision to simplify licensing paved the way for the achievements in the sector.  

“The government’s decision to tighten the licensing process and prioritise local processing has been a game-changer. It has forced investors to think beyond just extracting raw materials and instead focus on adding value to our mineral resources.”

Daily Trust reports that the government’s investment in processing with over $800m raked in, in terms of investment in processing.

This is evident in the $600 million lithium processing plant near Kaduna and Niger to boost local processing.

 ‘Investment in exploration game-changer’  

A mining lawyer, Barrister James Okorocha, said, “The government’s investment in exploration is a welcome development. It will not only help us discover new mineral deposits but also provide us with the data we need to attract serious investors.”

The government’s efforts are also having a positive impact on the global stage. Nigeria’s leadership of the African Mineral Strategy Group, a bloc focused on local value addition and fairer mineral trade, is a testament to its commitment to responsible mining practices.

He added that the government has established a number of initiatives aimed at promoting local content and beneficiation. These initiatives are designed to ensure that Nigerians benefit maximally from the country’s mineral resources.

According to Alhaji Suleiman, a local miner, “The government’s initiatives have been a game-changer for us. We are now able to participate in the mining sector in a more meaningful way, and we are benefiting from the revenue generated by our mineral resources.”