The solid minerals sector has played a vital role in Nigeria’s economy, contributing significantly to its growth and development, especially, the Gross Domestic Product (GDP). However, the discovery of crude oil in commercial quantity in Oloibiri, Bayelsa State in 1956, changed the narrative. Between 1960s and 1970s, mining accounted for around 4-5 per cent of Nigeria’s GDP. Aside from solid minerals, the non-oil sector, which previously drove the nation’s economy, suffered severe neglect.

When Dele Alake was appointed as the Minister of Solid Minerals by President Bola Tinubu, he began what many consider a new narrative in the sector.
Part of his mission was to make mining the country’s second growth factor, after crude oil, unveiling a seven-point ‘Agenda for the Transformation of the Solid Minerals Sector for International Competitiveness and Domestic Prosperity’, to guide his tour of duty at the ministry.

The seven-point agenda captures ‘Creation of the Nigerian Solid Minerals Corporation’, ‘Joint Ventures with Mining Multinationals’, ‘Big Data on Specific Seven Priority Minerals and their deposits’, ‘30-day grace for illegal miners to join artisanal cooperatives’, ‘Minerals Surveillance Task Force and Mine Police’, ‘Comprehensive review of all mining licences’, and ‘Creation of six mineral processing centres to focus on value-added products’.

Ever since, the sector has recorded notable achievements in the past two years, with revenue generation increasing dramatically from N6 billion in 2023 to N38 billion by the end of 2024, underscoring the impact of recent efforts to revitalise the industry.

According to Dr. Kayode Bankole, a mining expert, “the government’s decision to tighten the licensing process and prioritise local processing has been a game-changer. It has forced investors to think beyond just extracting raw materials and instead focus on adding value to our mineral resources.”

Alake noted that one of the key drivers of the growth in the sector is government’s focus on local processing. By ensuring that investors demonstrate a clear plan for local processing before being granted a mining license, the government is not only creating jobs but also stimulating economic growth.

“The results are already evident, with over $800 million in processing investments pouring into the sector last year alone.” A visit to the site of the $600 million lithium processing plant near Kaduna and Niger reveals a hive of activity. Workers were busy constructing facilities that will not only process lithium but also create hundreds of jobs for local residents. According to the plant’s manager, “We are not just building a plant; we are building a community. We are committed to sourcing our raw materials from local miners and providing training and capacity-building programs for our staff.”

The plant is expected to have a significant impact on the local economy, with many residents already benefiting from the construction process. “I have never seen anything like this before,” said Aisha Mohammed, a local resident who has been employed by the plant’s contractors. “The project has brought so much activity to our community, and we are excited to see the benefits it will bring in the long run.”

The government’s commitment to exploration is also yielding positive results. With only $2 million spent on mineral exploration before the current administration, the sector was largely underdeveloped.

According to Mr James Okorocha, a lawyer and expert in the mining sector, “the government’s investment in exploration is a welcome development. It will not only help us discover new mineral deposits but also provide us with the data we need to attract serious investors.”

The government’s efforts are also having a positive impact on the global stage. Nigeria’s leadership of the African Mineral Strategy Group, a bloc focused on local value addition and fairer mineral trade, is a testament to its commitment to responsible mining practices.

According to Alake, in the first quarter of 2025, two regulatory agencies — the Mining Cadastral Office (MCO) and the Mines Inspectorate — have recorded N6.9 billion and N7 billion in revenue, respectively.

The Minister projected this year to be a record-breaking one for the sector, adding that the current budget allocated N1 trillion for mineral exploration, targeted at generating internationally certified geological data.

“Exploration is key. 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 said.

“We are now focused on turning our mineral wealth into domestic economic value—jobs, technology, and manufacturing.” As part of its seven-point agenda, the Minister said he has taken aggressive steps to curb illegal mining and formalise artisanal activity. He noted that over 300 illegal miners were arrested last year, 150 prosecutions are ongoing, and nine convictions have been secured, including foreign nationals.

“We adopted both kinetic and non-kinetic strategies. While enforcement has yielded results through the Mining Marshals, we’re also empowering locals by formalising them into cooperatives, making them eligible for finance and revenue sharing,” he said. He added that over 250 mining cooperatives have been established nationwide to absorb informal miners into the formal economy.

The minister said Nigeria now chairs the newly formed African Mineral Strategy Group, a continental bloc focused on ensuring local value addition and fairer mineral trade deals across Africa.

“This was a direct result of Nigeria’s position at the 2024 Future Minerals Conference in Riyadh. We’re leading Africa in saying: no more raw material exports without domestic beneficiation.”

Reflecting on the rising investor confidence, Alake noted that top global players, including UK, US, Saudi Arabia, and UAE officials, have expressed interest in Nigeria’s lithium and other critical minerals.

“The former British Deputy Prime Minister personally invited me to Downing Street to discuss their interest in Nigerian lithium,” Alake said.

The minister added that as the sector continues to grow, investor interest is surging, “The Mining Cadastral Office received over 10,000 applications in just one quarter, a clear indication that Nigeria’s solid minerals sector is becoming an attractive destination for investors.”

The growth of the solid minerals sector is also having a positive impact on other sectors of the economy. According to the special assistant on media to the minister, Segun Tomori, “the sector is a key driver of economic growth, and its impact is being felt across various sectors, including manufacturing, construction, and infrastructure development.

“The government’s commitment to transparency and accountability is also yielding positive results. The sector is now more transparent, with regular updates on mining licenses, production levels, and revenue generation. This transparency is attracting serious investors who are looking for a stable and predictable business environment.”

He added that the government has established a number of initiatives aimed at promoting local content and beneficiation. These initiatives are designed to ensure that Nigerians benefit maximally from the country’s mineral resources.

A local miner, Alhaji Suleiman, said: “Government’s initiatives have been a game-changer for us. We are now able to participate in the mining sector in a more meaningful way, and we are benefiting from the revenue generated by our mineral resources.”

Tomori noted that the revitalisation of Nigeria’s solid minerals sector is a story of hope and transformation, adding that the government’s commitment to reform and development has yielded impressive results, and the future looks bright.

“As President Tinubu’s administration continues to drive growth and development in the sector, one thing is clear: Nigeria’s mineral wealth is being turned into real economic value for its people, industries, and future. The journey so far has been impressive, but there is still work to be done. As the sector continues to evolve, it will be interesting to see how the government addresses emerging challenges and opportunities.”

However, one of the key challenges facing the sector is infrastructure development. The government’s commitment to investing in infrastructure, such as roads, railways, and ports, is crucial to facilitating the transportation of mineral resources and promoting economic growth.

Meanwhile, stakeholders in the mining sector have advocated for the removal of the mineral resources from the Exclusive List to the Concurrent list in the 1999 Constitution, noting that such removal will present healthy synergy between the state, host community and investors.

They made the call during a one-day international conference themed, “Solid Minerals in Ebonyi State: The Government and the People,” held at Ebonyi State University, Abakaliki.

The international conference, a significant move towards enhancing the management and exploration of solid minerals in the state, was organised by the Ebonyi State Ministry of Solid Minerals in partnership with the Ebonyi State University and Ike Elechi Foundation, focusing on research, data management, and exploration of the state’s rich mineral resources.

They observed that since the licence for the sector is entirely in the hands of the Federal Government, it makes it very difficult for the state that owns the land to make a meaningful impact, adding that most of the investors don’t even live up to their social responsibility to their host communities.

Declaring the conference open, Governor Francis Nwifuru noted that the state is blessed with numerous mineral deposits, but since mineral resources fall under the federal exclusive list, the Federal Government has a responsibility to compensate host communities impacted by mining activities.

The governor, represented by the Commissioner for Commerce and Industry, Oguzu Offia Nwali, noted that the conference will foster dialogue between various stakeholders concerning the sustainable development of mineral resources in Ebonyi State, adding that his administration has created the enabling environment that will drive the sector.