Nigeria’s solid minerals sector attracted over $800 million in processing investments in 2024, following reforms introduced by President Bola Tinubu’s administration, including a local value addition policy and a tightened licensing regime.
Minister of Solid Minerals Development, Dr. Dele Alake, disclosed this during a feature interview for an upcoming State House documentary marking President Tinubu’s second anniversary in office.
A statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, quoted Alake as saying that investor interest in Nigeria’s mining sector has surged due to strategic reforms championed by the current administration.
He listed key projects, including a $600 million lithium processing plant near the Kaduna-Niger border, set for commissioning this quarter; a $200 million lithium refinery near Abuja, nearing completion; and two additional plants in Nasarawa State expected to come on stream before the third quarter of 2025.
“These investments were made possible by our firm policy that no miner gets a license without establishing a local processing facility. The era of exporting raw minerals from pit to port is over,” Alake said.
“When we resumed, the entire sector generated just ₦6 billion annually. By the end of 2024, we had increased that figure to ₦38 billion—with only 18 percent of our ₦29 billion budgetary allocation released. That speaks volumes about the efficiency of our policy framework.”
He added that in the first quarter of 2025 alone, two key regulatory agencies—the Mining Cadastral Office (MCO) and the Mines Inspectorate—generated ₦6.9 billion and ₦7 billion in revenue, respectively.
Alake projected that 2025 would be a record-breaking year for the sector, revealing that the government has budgeted ₦1 trillion for mineral exploration, aimed at producing internationally certified geological data.
“Exploration is fundamental. Before we came in, Nigeria had only spent $2 million on mineral 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 commit funds without credible data. We’re changing that,” he said.
As part of the administration’s seven-point agenda, Alake said the ministry has intensified the fight against illegal mining and is working to formalise artisanal miners. Over 300 illegal miners were arrested in 2024, with 150 prosecutions ongoing and nine convictions secured, including foreign nationals.
“We have adopted both kinetic and non-kinetic strategies. While enforcement is being carried out by the Mining Marshals, we are also supporting locals through the creation of cooperatives, making them eligible for funding and legal mining operations,” he said, adding that over 250 mining cooperatives have now been established nationwide.
Alake also announced that Nigeria now chairs the newly formed African Mineral Strategy Group—a continental body focused on local value addition and fairer trade terms for African mineral-producing nations.
“This was a direct outcome of Nigeria’s leadership at the 2024 Future Minerals Forum in Riyadh. Africa is now united in saying: no more export of raw materials without domestic beneficiation,” he said.
On investor confidence, Alake revealed that officials from the UK, US, Saudi Arabia, and the UAE have shown strong interest in Nigeria’s lithium and other critical minerals.
“The former British Deputy Prime Minister personally invited me to Downing Street to discuss investment in Nigerian lithium. The United States is also seeking to diversify from Chinese mineral supply chains and sees Nigeria as a key alternative,” he added.
He concluded that with new revenue streams, growing foreign direct investment, tighter regulation, and a clear path to industrialisation, Nigeria’s solid minerals sector has become a cornerstone of the Tinubu administration’s economic diversification agenda.
“Nigeria has never had it this good in the solid minerals sector. We are restoring investor confidence, building reliable data, enforcing laws, and delivering value to Nigerians. The Mining Cadastral Office alone received over 10,000 licensing applications this quarter—an unprecedented milestone. The energy we’ve injected into this sector is unmatched,” Alake said.
