In a transformative push for Nigeria’s solid minerals sector, the administration of President Bola Tinubu has driven significant growth through innovative policies emphasizing local value addition and stricter licensing regulations. These reforms have spurred over $800 million in processing projects in 2024, marking a pivotal moment for the nation’s mining industry, according to Dr. Dele Alake, the Minister of Solid Minerals Development.
Speaking during an interview for a State House documentary commemorating President Tinubu’s second anniversary, Alake highlighted the sector’s remarkable progress. Revenue soared to N38 billion in 2024, a sharp rise from N6 billion the previous year, despite receiving only 18% of the sector’s N29 billion budgeted allocation. This growth underscores the effectiveness of the administration’s strategic overhaul, which prioritizes domestic processing over raw mineral exports.
Key projects include a $600 million lithium processing facility near the Kaduna-Niger border, set for commissioning this quarter, and a $200 million lithium refinery near Abuja, nearing completion. Two additional plants in Nasarawa are expected to be operational by the third quarter of 2025. These developments align with a policy mandating that mining licenses are granted only to companies with clear plans for local processing, ending the era of exporting unprocessed minerals.
Alake emphasized the sector’s revenue potential, noting that in the first quarter of 2025, the Mining Cadastral Office and the Mines Inspectorate generated N6.9 billion and N7 billion, respectively. With a N1 trillion budget allocated for mineral exploration this year, the ministry aims to produce internationally certified geological data to attract further investment. “Exploration is critical. Nigeria previously spent only $2 million on exploration, compared to $300 million in South Africa. Reliable data is essential for serious investors,” Alake explained.
The administration has also cracked down on illegal mining, arresting over 300 individuals in 2024, with 150 prosecutions ongoing and nine convictions secured, including foreign nationals. To integrate artisanal miners into the formal economy, over 250 mining cooperatives have been established, providing access to financing and revenue-sharing opportunities.
On the global stage, Nigeria has taken a leadership role by chairing the African Mineral Strategy Group, formed to promote local value addition and equitable mineral trade across the continent. This initiative, solidified at the 2024 Future Minerals Conference in Riyadh, has positioned Nigeria as a leader in advocating for domestic beneficiation. Interest from global players, including the UK, US, Saudi Arabia, and the UAE, has surged, with discussions held at high levels, including an invitation to Downing Street to explore Nigeria’s lithium potential.
These reforms signal a new era for Nigeria’s mining sector, transforming it into a hub for job creation, technological advancement, and sustainable economic growth. With investor confidence on the rise and a robust policy framework in place, the sector is poised for a record-breaking year in 2025.
