Nigeria’s Ministry of Solid Minerals Development has recorded a significant increase in revenue, rising to over 70 billion in 2025. This growth is attributed to the implementation of wide-ranging reforms and strategic policies that have repositioned the country’s mining sector and attracted renewed global interest. According to Segun Tomori, Special Assistant on Media to the Minister of Solid Minerals Development, Dr. Dele Alake, the revenue from the sector increased from 16 billion in 2023 to 38 billion in 2024 and is projected to exceed 70 billion by the end of 2025.
The improvement is a result of the minister’s seven-point agenda, which focuses on reforms, transparency, investor confidence, and local value addition. The ministry has revoked a total of 2,557 mining licenses, including 1,633 in late 2023 and 924 in early 2024, due to non-payment of annual service fees. This move aims to create room for serious investors and promote responsible mining practices. Additionally, the guidelines for Community Development Agreements (CDAs) have been revised to ensure that host communities give consent before licenses are approved.
The ministry has also addressed the issue of illegal mining, which has been a major challenge in the sector. The establishment of mining marshals in 2024 has led to the arrest of over 300 illegal miners, with about 150 undergoing prosecution, and the recovery of 98 illegal mining sites. To further strengthen enforcement, nationwide satellite surveillance of mining sites is expected to commence in 2026.
Nigeria’s push for local value addition has also led to the formation of the Africa Minerals Strategy Group, with Dr. Alake elected as its pioneer chairman. The revenue growth, although unprecedented, remains a fraction of the sector’s vast potential. The minister plans to consolidate reforms in 2026 to make solid minerals a major contributor to Nigeria’s Gross Domestic Product.
To address federal and state conflicts over mining control, the minister has introduced cooperative federalism, encouraging states to apply for mining licenses and operate through limited liability companies. This approach has resulted in joint venture investments in several states, including Nasarawa, Kaduna, Oyo, and the Federal Capital Territory. The sector has also attracted significant foreign direct investment, with about $1.5 billion invested since 2023, and a $400 million rare-earth metals facility in the pipeline.
