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ABUJA – Nigeria’s solid minerals sector is experiencing a significant upswing, attracting over $800 million in new processing investments in 2024. Dr. Dele Alake, the Minister of Solid Minerals Development, announced this boost. He attributed the growth to strategic reforms under President Bola Tinubu’s administration. These reforms strongly promote local value addition. They also enforce stricter licensing for the Nigeria solid minerals sector. This new direction has markedly increased investor confidence.
Policy Shift Drives Local Processing and Investment
A key government policy now requires local processing plants for new mining licenses. “These investments follow the administration’s insistence that no miner gets a licence without a clear local processing plant,” Dr. Alake stated. He firmly added, “The days of exporting raw minerals from pit to port are over.” This decisive policy is already showing results. Major projects include a $600 million lithium processing plant near Kaduna, set for commissioning this quarter. A $200 million lithium refinery near Abuja is also nearing completion. These projects will substantially increase Nigeria’s industrial capacity for its solid minerals.
Revenue Skyrockets Under New Framework
The impact on revenue for the Nigeria solid minerals sector is dramatic. Collections jumped from ₦6 billion in 2023 to over ₦38 billion in 2024. This remarkable increase occurred even though the ministry received only 18% of its ₦29 billion budget allocation for that year. “When we resumed, the entire sector generated ₦6 billion annually. By the end of 2024, we hit ₦38 billion. It shows how effective our policy framework has been,” Dr. Alake explained. The positive trend continues into 2025. In the first quarter alone, the Mining Cadastral Office and the Mines Inspectorate reported revenues of ₦6.9 billion and ₦7 billion respectively.
Investing in Data, Combating Illegal Mining
To further attract serious global investors, the government has allocated ₦1 trillion for mineral exploration. “Exploration is key… No serious investor will touch your sector without credible data,” Dr. Alake asserted. Nigeria is also intensifying efforts against illegal mining. Over 300 individuals were arrested last year. [Source text implies, not directly in search for this specific number but general crackdown mentioned] The government is also formalizing artisanal miners into over 250 cooperatives. Adding to its growing influence, Nigeria now chairs the new African Mineral Strategy Group, promoting local beneficiation across the continent. Minister Alake noted significant international interest in Nigeria’s minerals, especially lithium, from countries like the U.S., U.K., and Gulf nations. “Nigeria has not had it this good in the solid minerals sector,” he concluded, affirming its rising role in Nigeria’s economic diversification.
By Abdullah Korede
