It is no coincidence that revenue from solid minerals has surged astronomically since the advent of the President Bola Tinubu administration.
From a paltry N16bn generated from the sector in 2023, it moved to N38bn in 2024 and is now set to cross the N70bn mark under the stellar stewardship of the Minister of Solid Minerals Development, Dr Dele Alake.
Since assuming office, Alake has redirected global attention to the nation’s mining sector in a manner quite unprecedented. Armed with the now-famous 7-point agenda, he hit the ground running with reforms that included the revocation of 1,633 licences for default in payment of annual service fees in late 2023, while another 924 dormant licences were revoked in early 2024 to free up space for serious investors.
Guidelines for Community Development Agreements (CDAs) were also revised to make consent of host communities an integral part of the licence application process, whilst the elephant in the room – illegal mining – is being tackled with the establishment of the mining marshals in 2024. Just over one year after, over 300 illegal miners have been apprehended, with about 150 undergoing prosecution and 98 illegal mining sites recovered. Nationwide satellite surveillance of mining sites is billed to come on stream in 2026 to bolster the capacity of the marshals.
Though mining belongs to the exclusive legislative list, the minister creatively introduced the principle of cooperative federalism to encourage states to apply for mining licences and operate as limited liability companies. This has produced tremendous results, as several states now have Joint Venture (JV) partnerships that have yielded several investments in Nasarawa, Kaduna, Abuja, Oyo, and others.
Today, lithium factories are springing up, a $400m rare earth metals plant is in the offing, and it is estimated that close to $1.5bn in Foreign Direct Investment (FDI) has been attracted to the sector since 2023.
On the global stage, Alake’s advocacy for local value addition – a major component of his 7-point agenda that seeks to make processing or some form of refining of minerals mandatory before exports – has caught continental attention, leading to the establishment of the Africa Minerals Strategy Group (AMSG).
The AMSG, a body of African Ministers of Solid Minerals/Mining, unanimously elected Dr Alake as pioneer chairman – a testament to how his vision has thrilled his colleagues and positioned Nigeria as leading the continent’s mining sector renaissance.
To enhance the ease of doing business in the sector, the Nigeria Minerals Decision Support System (NMRDSS)—a web-based platform—was established to attract investments and serve as a repository of information on geoscientific and geo-economic data on Nigeria’s mineral resources, featuring interactive mapping, geological data, infrastructure details, and others.
I can go on and on; therefore, it is no surprise that we are set to cross the N70bn mark in 2025. Though unprecedented, it is still a drop in the ocean, considering the vast potential of the mining sector.
We will go again in 2026 to surpass this record by consolidating on reforms to ensure solid minerals ultimately become a major contributor to our nation’s Gross Domestic Product (GDP).
Happy New Year!
Segun Tomori, ANIPR, FSCA; Special Assistant on Media to the Honourable Minister of Solid Minerals Development
