The Federal Government has disclosed that the solid minerals sector attracted over $800 million in processing investments in 2024, a significant outcome of the Tinubu administration’s policy reforms aimed at boosting local value addition and strengthening licensing regulations.
In a statement issued by presidential spokesperson Bayo Onanuga, Minister of Solid Minerals Development, Dr. Dele Alake, revealed the data during an interview for an upcoming State House documentary marking President Bola Tinubu’s second year in office. Alake explained that the sector recorded a revenue jump from ₦6 billion in 2023 to ₦38 billion in 2024, despite receiving only 18 percent of its ₦29 billion budgeted allocation. He attributed this performance to the administration’s insistence on in-country mineral processing before licensing any mining operation.
Among the notable investments are a $600 million lithium processing plant near the Kaduna-Niger border, which is set for commissioning in the second quarter of 2025, a $200 million refinery nearing completion on the outskirts of Abuja, and two additional lithium processing plants in Nasarawa State expected to be operational before the third quarter of the year.
Alake stated that these investments are a direct result of the Federal Government’s firm policy that no miner would be granted a license without a clearly defined plan for domestic processing. He emphasized that the days of exporting raw minerals from Nigeria without any value addition are over.
According to the minister, in the first quarter of 2025 alone, the Mining Cadastral Office and the Mines Inspectorate generated ₦6.9 billion and ₦7 billion in revenue respectively. He also revealed that ₦1 trillion has been allocated in the current budget for mineral exploration, a critical step toward generating internationally certified geological data. Alake lamented that before the administration’s intervention, Nigeria had only invested about $2 million in exploration, compared to significantly higher figures in South Africa, Côte d’Ivoire, and Sierra Leone. He said the new funding will make Nigeria’s mineral landscape more attractive to credible global investors.
In tackling illegal mining, Alake said the government adopted both enforcement and inclusive development strategies. Over 300 illegal miners were arrested in 2024, with 150 prosecutions currently underway and nine convictions secured. He also disclosed that more than 250 mining cooperatives have been established nationwide, allowing informal miners to participate in the formal economy with access to finance, equipment, and structured revenue sharing.
Alake noted that Nigeria’s reform-driven leadership in the sector has gained international recognition. The country now chairs the African Mineral Strategy Group, a new continental alliance focused on promoting domestic beneficiation and ensuring fairer mineral trade deals for African countries. He linked Nigeria’s leadership role in the group to the strong stance it took at the 2024 Future Minerals Conference in Riyadh, where it advocated for a halt to the export of unprocessed raw materials from the continent.
Investor confidence has surged, with countries such as the United Kingdom, United States, Saudi Arabia, and the United Arab Emirates expressing interest in Nigeria’s critical minerals, particularly lithium. Alake said that the former British Deputy Prime Minister invited him to Downing Street to discuss investment opportunities, while U.S. officials are exploring Nigeria as an alternative source of lithium outside China.
He added that the Mining Cadastral Office has received over 10,000 applications for mining licenses in the first quarter of 2025 alone, indicating a high level of investor interest. Alake affirmed that with clearer regulation, targeted exploration, stronger enforcement, and growing foreign interest, the solid minerals sector is fast becoming a central pillar in the Tinubu administration’s economic diversification plan.
“Nigeria has not had it this good in the solid minerals sector,” he said. “We’re restoring investor confidence, building up our data systems, enforcing the law, and ensuring that the Nigerian people benefit from the resources beneath their feet.”
