Ola Akinwunmi
The Federal Government has announced that its mining reforms have attracted over $800 million in processing investments in the solid minerals sector in 2024. Minister of Solid Minerals Development, Dele Alake, attributed the surge in investments to the Tinubu administration’s policy shift, favoring in-country value addition and stricter licensing requirements.
Alake revealed that sector revenue climbed to over ₦38 billion in 2024, up from ₦6 billion the previous year, despite the ministry receiving only 18% of its ₦29 billion budget allocation. The Minister highlighted several major projects underway, including a $600 million lithium processing plant near Kaduna and a $200 million lithium refinery near Abuja.
“These investments follow the administration’s insistence that no miner gets a licence without a clear local processing plant. The days of exporting raw minerals from pit to port are over.
“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 percent of our ₦29 billion budgetary allocation released. It shows how effective our policy framework has been,” said Dr Alake.
The Minister projected that 2025 would be a landmark year for the industry, with ₦1 trillion allocated to mineral exploration aimed at generating certified geological data that meets international standards. Alake emphasized that the ministry is focused on turning Nigeria’s mineral wealth into domestic economic value, jobs, technology, and manufacturing.
The ministry has taken firm steps to tackle illegal mining and integrate informal miners into the formal economy. Over 300 illegal miners were arrested last year, with 150 cases currently being prosecuted and nine convictions secured. The ministry has also formed over 250 mining cooperatives across the country to absorb informal miners into structured operations.
Alake announced that Nigeria now leads the newly created African Mineral Strategy Group, a continental platform designed to promote value addition within Africa and ensure more equitable mineral trade agreements. He also highlighted growing international interest in Nigeria’s mineral potential, with senior officials from the UK, US, Saudi Arabia, and UAE expressing keen interest in lithium and other critical resources.
The Minister concluded that with rising revenues, increased foreign investment, stronger regulations, and a clear industrialization roadmap, the solid minerals sector has become central to the Tinubu administration’s economic diversification strategy. The sector’s renewed energy and investor confidence are expected to drive economic growth and development in Nigeria.