Nigeria’s Federal Government says it is accelerating reforms in the solid minerals sector with the long-term ambition of generating more revenue from mining than from crude oil.
The Minister of Solid Minerals Development, Dele Alake, made the declaration on Wednesday during the launch of the Early Stage Mineral Exploration and Research Grants Endowment (EMERGE), a new initiative designed to boost exploration and investment in the sector.
According to him, the programme implemented through the Solid Minerals Development Fund (SMDF)—is part of a broader strategy to reposition mining as a key pillar of Nigeria’s economic diversification drive under President Bola Ahmed Tinubu.
Alake said the administration had promised to transform Nigeria’s vast but underutilised mineral resources into a major revenue stream, adding that the launch of EMERGE marks a key step toward fulfilling that pledge.
He explained that the initiative forms part of a structured reform agenda aimed at modernising the entire solid minerals ecosystem, attracting investment and improving geological data collection across the country.
The minister noted that Nigeria has already begun attracting significant investor interest, citing about $2.2 billion in foreign direct investment into the sector following regulatory reforms and tighter oversight.
He said improved governance and enforcement had helped sanitise the industry and restore investor confidence.
Alake also disclosed that annual revenue from the sector has risen sharply in recent years, moving from about ₦16 billion historically to around ₦38 billion in 2024, and surpassing ₦70 billion by the end of 2025.
Despite the growth, he maintained that the government’s target is far more ambitious, stating that the solid minerals sector is being positioned to eventually rival and surpass oil revenue contributions to the Federation Account.
The minister highlighted plans for a Nigerian Solid Minerals Company, structured as a commercial entity to partner with private investors in a model similar to the Nigeria Liquefied Natural Gas (NLNG) framework.
He also stressed the government’s push for local value addition, saying raw mineral exports will no longer be the dominant practice as Nigeria seeks to process more resources domestically.
According to him, a $1.3 billion aluminium refinery project is already underway, alongside planned lithium and gold processing facilities expected to boost industrial output.
Alake further noted that Nigeria’s geological mapping remains limited, with previous surveys covering only about 5 percent of the country’s landmass despite revealing numerous mineral deposits.
He said expanding exploration data is essential for attracting credible investors and guiding long-term sector planning.
On regulatory enforcement, the minister pointed to the introduction of Mining Marshals and the digitisation of the Mining Cadastre Office as part of efforts to curb illegal mining and improve transparency.
He added that over 3,000 dormant mining licences have been revoked as part of a cleanup exercise targeting speculative holders of mineral rights.
The Federal Government says these combined reforms are intended to reposition Nigeria’s solid minerals sector as a major driver of revenue, industrialisation and job creation in the coming years.
