Abuja, Nigeria – Nigeria’s solid minerals sector has experienced a significant boost under the Tinubu administration’s new policies, attracting over $800 million in foreign investment for processing projects last year and achieving a six-fold increase in revenue.
According to Dele Alake, the Minister of Solid Minerals Development, the sector generated over ₦38 billion ($25.3 million USD) in revenue in 2024, a substantial rise from just ₦6 billion ($4 million USD) in the previous year. This growth occurred despite the ministry receiving only 18% of its allocated budget of ₦29 billion ($19.3 million USD).
Dr. Alake revealed these figures during an interview for an upcoming State House documentary, marking President Bola Tinubu’s second anniversary in office. He attributed the surge in investor interest to the administration’s mining sector reforms, which prioritise local value addition and a stricter licensing regime.
The minister highlighted several new investments, including a $600 million lithium processing plant near the Kaduna-Niger border, scheduled for commissioning this quarter. Another $200 million lithium refinery on the outskirts of Abuja is nearing completion, with two additional processing plants in Nasarawa slated for commissioning before the third quarter of 2025.
“These investments follow the administration’s insistence that no miner gets a license without a clear local processing plant. The days of exporting raw minerals from pit to port are over,” Mr. Alake stated. “When we resumed, the entire sector generated ₦6 billion annually. By the end of 2024, we hit ₦38 billion. And this was with just 18% of our ₦29 billion budgetary allocation released. It shows how effective our policy framework has been.”
In the first quarter of 2025 alone, two key regulatory agencies – the Mining Cadastral Office (MCO) and the Mines Inspectorate – have already recorded ₦6.9 billion and ₦7 billion in revenue respectively.
Dr. Alake projected 2025 to be a record-breaking year for the sector, noting that the current budget includes ₦1 trillion ($667 million USD) for mineral exploration, aimed at generating internationally certified geological data.
“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,” he explained. “We are now focused on turning our mineral wealth into domestic economic value—jobs, technology, and manufacturing.”
As part of a seven-point agenda, the minister detailed aggressive steps taken to curb illegal mining and formalise artisanal activities. He reported that over 300 illegal miners were arrested last year, with 150 prosecutions ongoing and nine convictions secured, including those of foreign nationals.
“We adopted both kinetic and non-kinetic strategies. While enforcement has yielded results through the Mining Marshals, we’re also empowering locals by formalising them into cooperatives, making them eligible for finance and revenue sharing,” he said. Over 250 mining cooperatives have been established nationwide to integrate informal miners into the formal economy.
Mr. Alake also highlighted Nigeria’s new role in chairing the recently 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 growing investor confidence, Alake noted expressed interest from top global players, including officials from the UK, US, Saudi Arabia, and UAE, in Nigeria’s lithium and other critical minerals. He mentioned that the former British Deputy Prime Minister had personally invited him to Downing Street to discuss their interest in Nigerian lithium.
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