Reforms, investor confidence, and crackdown on illegal mining drive sector to over N70 billion in 2025
The Ministry of Solid Minerals Development has reported a 337 per cent surge in revenue, with earnings rising from N16 billion in 2023 to over N70 billion in 2025, under the leadership of Minister Dr. Dele Alake.
The development was disclosed by the Minister’s Special Assistant on Media, Segun Tomori, who credited the growth to a series of strategic reforms that have repositioned Nigeria’s mining sector, boosted transparency, and attracted renewed global investment.
“Revenue jumped from N16 billion in 2023 to N38 billion in 2024 and is projected to exceed N70 billion by the end of 2025,” Tomori said, noting that the gains followed the implementation of Alake’s seven-point agenda, which emphasizes reforms, local value addition, and investor confidence.
Key reforms driving growth
As part of the reforms, the Ministry:
- Revoked over 2,500 mining licences between 2023 and 2024 for non-payment of fees or dormancy, freeing space for serious investors.
- Updated Community Development Agreement (CDA) guidelines to ensure host communities approve new licences.
- Cracked down on illegal mining, arresting more than 300 illegal miners, prosecuting around 150, and recovering 98 unauthorized sites. A nationwide satellite surveillance system is expected to begin in 2026 to further strengthen enforcement.
- Introduced cooperative federalism to resolve conflicts between federal and state governments, encouraging states to apply for licences and operate via joint ventures. States including Nasarawa, Kaduna, Oyo, and the FCT have benefited.
Investment and industry expansion
Tomori also highlighted new developments in the sector:
- Emergence of lithium processing plants across the country.
- A $400 million rare-earth metals facility under construction.
- Attraction of approximately $1.5 billion in foreign direct investment since 2023.
On the continental stage, Nigeria’s push for local value addition led to the creation of the Africa Minerals Strategy Group, with Alake elected as its pioneer chairman.
“While the revenue growth is unprecedented, it represents only a fraction of the sector’s potential. Reforms will be consolidated in 2026 to position solid minerals as a major contributor to Nigeria’s GDP,” Tomori added.
