Nigeria’s Mining Awakening: Revenue Rises, Questions Remain
By AUGUSTINA McSOLOMON-OGHAKPERUO
Unlocking Nigeria’s Buried Wealth: Can Solid Minerals Deliver Lasting Revenue?
A Sector Re-Imagined
FOR decades, Nigeria’s solid minerals sector existed on the margins of national planning, overshadowed by oil. That is changing. Under President Tinubu’s diversification drive, mining has been repositioned as a strategic revenue engine.
With vast deposits of lithium, gold, limestone, bitumen and rare earths, the sector offers both fiscal and developmental opportunities.
Reforms Reshaping the Landscape
The government’s reform package targets long-standing inefficiencies. Digital cadastre systems have improved transparency, while stricter licensing rules aim to curb hoarding and illegal extraction.
Security operations combining enforcement and engagement have been deployed to protect mining sites and formal operators.
Measuring the Revenue Impact
According to the Ministry of Solid Minerals Development, revenues have risen sharply. From ₦8.6 billion in 2022, collections reached ₦38 billion in 2024 and exceeded ₦50 billion by December 2025.
Officials say these figures represent early but meaningful gains, with potential for exponential growth if reforms are sustained.
Foreign Investment and Local Value Chains
Investment flows suggest cautious optimism among global mining firms. Lithium and rare earth processing projects worth billions of dollars are underway, supported by incentives such as duty waivers and profit repatriation guarantees.
The government argues that local processing plants will create jobs, deepen supply chains and shield the economy from commodity price shocks.
Transparency, Environment and Community Impact
Despite progress, civil society organisations warn that illegal mining and weak environmental enforcement continue to undermine revenue and social stability. Reports of land degradation and farmer displacement raise questions about sustainability.
NEITI maintains that without stronger accountability, the sector may fail to reflect its true economic potential.
Sustaining Momentum Beyond 2025
As policymakers look ahead to 2026, the focus is shifting from reform rollout to consolidation. Addressing infrastructure deficits, improving security and expanding access to finance will be critical to ensuring that solid minerals become a dependable pillar of Nigeria’s economy.
