Nigeria’s solid minerals sector recorded a sharp rise in revenue in 2025, generating more than N70 billion, as government reforms begin to unlock the long-underutilized potential of the country’s mining industry.

The latest figures mark a significant jump from about N38 billion in 2024, and more than four times the N16 billion recorded in 2023, highlighting a steady acceleration in earnings over the past two years.

According to Segun Tomori, Special Assistant on Media to the Minister of Solid Minerals Development, Dele Alake, the revenue surge reflects wide-ranging policy changes aimed at restoring credibility, attracting investment, and tightening oversight across the sector.

License clean-up and stronger regulation

A major pillar of the reform drive has been the cleanup of inactive and non-compliant mining licenses. In late 2023, the ministry revoked 1,633 licenses for failure to pay annual service fees. This was followed by the cancellation of another 924 dormant licenses in early 2024, freeing up mining titles for more capable and committed investors.

The government also revised Community Development Agreement (CDA) guidelines, making host community consent a prerequisite for license approvals. Officials say the move has reduced disputes, improved social buy-in, and created a more stable operating environment for mining companies.

Crackdown on illegal mining

Illegal mining, long seen as a drain on government revenue and a source of insecurity, has been a key focus of enforcement efforts.

In 2024, the ministry launched a dedicated mining marshals unit to combat unauthorized activities. Within a year, more than 300 illegal miners were arrested, with around 150 currently facing prosecution. Authorities also recovered 98 illegal mining sites, restoring them to formal regulatory control.

To strengthen monitoring, the ministry plans to roll out nationwide satellite surveillance of mining operations this year, a move expected to improve transparency and curb revenue leakages.

Push for Local Value Addition

Beyond regulation, Nigeria is placing growing emphasis on processing minerals locally rather than exporting raw materials. This strategy has been reinforced through the creation of the Africa Minerals Strategy Group, which elected Minister Alake as its pioneer chairman.

As part of this shift, lithium processing plants are beginning to emerge in several parts of the country, while plans are underway for a $400 million rare-earth metals processing facility. Officials say these projects will deepen industrial capacity, create jobs, and boost export earnings.

Rising investment and state participation

The ministry also introduced a cooperative federalism framework to address longstanding tensions between federal and state governments over mining control. Under the approach, states are encouraged to apply for mining licenses and operate through limited liability companies.

This model has already led to joint-venture mining investments in states such as Kaduna, Nasarawa, Oyo, and the Federal Capital Territory, expanding participation beyond the federal level.

Since 2023, the sector has attracted an estimated $1.5 billion in foreign direct investment, signaling renewed global interest in Nigeria’s mineral resources.

A sector still below its potential

Despite the record revenue figures, officials acknowledge that solid minerals still account for a small share of Nigeria’s overall economic output.

Tomori noted that while the gains are unprecedented, they represent only a fraction of the sector’s capacity. The government plans to consolidate reforms in 2026, with the goal of positioning solid minerals as a meaningful contributor to Nigeria’s GDP alongside oil, gas, and agriculture.

As enforcement tightens and value addition accelerates, Nigeria’s mining sector appears set to play a larger role in the country’s diversification strategy in the years ahead.