Tinubu’s Mining Reforms Spark Six-Fold Revenue Surge And $800M Investment Boom.
Nigeria’s solid minerals sector has undergone a remarkable transformation under President Bola Tinubu’s administration, with revenues soaring from ₦6 billion in 2023 to ₦38 billion in 2024—a six-fold increase—despite receiving only 18% of its ₦29 billion budgeted allocation. The sector has also attracted over $800 million in foreign investment for processing projects, driven by a robust policy framework emphasising local value addition and stringent licensing reforms. These achievements were revealed by Dr Dele Alake, Minister of Solid Minerals Development, during an interview for a State House documentary marking President Tinubu’s second anniversary in office.
The minister highlighted the commissioning of a $600 million lithium processing plant near the Kaduna-Niger border, set for this quarter, and a $200 million lithium refinery on the outskirts of Abuja, nearing completion. Two additional processing plants in Nasarawa are slated for commissioning before the third quarter of 2025. These investments stem from the administration’s strict policy that no mining licence will be issued without a clear plan for local processing. “The days of exporting raw minerals from pit to port are over,” Alake declared, underscoring the shift towards domestic beneficiation.
The reforms have already yielded impressive results. In the first quarter of 2025 alone, the Mining Cadastral Office (MCO) and Mines Inspectorate recorded ₦6.9 billion and ₦7 billion in revenue, respectively. Alake attributed these gains to the administration’s strategic interventions, including a ₦1 trillion budget allocation for mineral exploration in 2025 to generate internationally certified geological data. “When we came in, Nigeria had spent just $2 million on exploration, compared to $40 million in Sierra Leone, $148 million in Côte d’Ivoire, and over $300 million in South Africa. No serious investor will touch your sector without credible data,” he noted.
The minister’s seven-point agenda has also tackled illegal mining with a dual approach of enforcement and formalisation. Over 300 illegal miners were arrested in 2024, with 150 prosecutions ongoing and nine convictions secured, including foreign nationals. The Mining Marshals, a specialised security unit, have been instrumental in these efforts. Simultaneously, the ministry has formalised artisanal mining by establishing over 250 cooperatives nationwide, enabling informal miners to access finance and revenue-sharing opportunities within the formal economy.
On the global stage, Nigeria’s leadership in the newly formed African Mineral Strategy Group, established following the 2024 Future Minerals Conference in Riyadh, has positioned the country as a champion of local value addition across the continent. “We’re leading Africa in saying: no more raw material exports without domestic beneficiation,” Alake stated. This stance has attracted significant international interest, with top global players from the UK, US, Saudi Arabia, and the UAE eyeing Nigeria’s lithium and critical minerals. Notably, the former British Deputy Prime Minister invited Alake to Downing Street to discuss investment opportunities.
Alake projected that 2025 will be a record-breaking year for the sector, with increased exploration and investment set to create jobs, transfer technology, and boost manufacturing. “We are now focused on turning our mineral wealth into domestic economic value,” he said, reflecting the administration’s commitment to leveraging Nigeria’s vast mineral resources for sustainable economic growth.
The Tinubu administration’s reforms have not only revitalised the solid minerals sector but also restored investor confidence, positioning Nigeria as a key player in the global mining industry. As the country prepares to commission its new processing facilities, the future of Nigeria’s mining sector looks brighter than ever.
