By Kingsley Benson
Nigeria’s long-neglected solid minerals sector is beginning to show signs of fiscal relevance, driven by sweeping reforms, tighter enforcement, and a renewed push for local value addition. In 2025, the sector recorded one of its strongest performances in decades, with government revenue surging sharply and remittances to the Federation Account rising to levels that place mining firmly back on the national economic map.
The Ministry of Solid Minerals Development reported that revenue generated from the sector rose by 337 percent to over N70 billion in 2025, compared with N16 billion in 2023. The figures mark a steady climb from N38 billion recorded in 2024, underscoring a two-year turnaround attributed to policy reforms and enforcement actions under the leadership of the Honourable Minister of Solid Minerals Development, Dr. Dele Alake.
The revenue growth was disclosed by the minister’s Special Assistant on Media, Segun Tomori, who said the gains reflect the implementation of a seven-point reform agenda focused on transparency, investor confidence, regulatory discipline, and domestic value addition.
Beyond headline revenue, official remittance data shows how the sector translated reforms into cash flows for government. Between January and November 2025, solid minerals contributed a total of N63.92 billion to the Federation Account, according to figures presented to the Federation Account Allocation Committee (FAAC). The inflows reveal a year defined by volatility, a strong second-quarter rebound, and late-year moderation linked to security challenges.
The year began slowly. January remittances stood at N4.18 billion, followed by N3.78 billion in February. March marked the weakest point, with collections falling to N2.15 billion, reflecting subdued production and export activity. By the end of the first quarter, cumulative inflows were just N10.10 billion, accounting for less than 16 percent of the January to November total.
Momentum shifted sharply in the second quarter. April remittances surged to N7.88 billion, while May emerged as the strongest month of the year, with N9.66 billion paid into the Federation Account. June sustained the rebound with N4.75 billion. Together, April to June delivered over N22 billion, more than half of the entire eleven-month inflow, cementing the second quarter as the fiscal high point for the sector.
The third quarter maintained relative strength. July recorded N5.84 billion, August N6.23 billion, and September N7.32 billion, the third-best monthly performance of the year. October followed with N6.86 billion before inflows eased to N5.28 billion in November.
An official revenue note accompanying the FAAC presentation attributed the late-year moderation partly to rising insecurity, which disrupted mining operations and logistics in some regions. Still, November’s performance remained well above early-year levels and far stronger than the March low.
“The revenue collected by the ministry into the Federation Account for the month of November 2025 is N5.28billion,” the note stated, adding that N3.44 billion came from royalties, while N1.84 billion was realised from fees. It also highlighted a positive variance against the monthly target, despite a month-on-month decline linked to security-related disruptions.
Behind the revenue numbers lies a reform-heavy policy drive. In late 2023, the ministry revoked 1,633 mining licences over non-payment of annual service fees, followed by the revocation of another 924 dormant licences in early 2024. The objective, according to officials, was to free up assets for serious investors and curb speculative licence hoarding.
Community relations were also tightened. Guidelines for Community Development Agreements were revised to require explicit host community consent before mining licences are approved, a move aimed at reducing conflict and improving social licence to operate.
Illegal mining, long a drag on revenue and security, has been confronted through the creation of mining marshals in 2024. Within a year, more than 300 illegal miners were arrested, about 150 cases moved into prosecution, and 98 illegal mining sites were recovered. Nationwide satellite surveillance of mining sites is scheduled to commence in 2026 to further strengthen enforcement.
On the federal-state fault line that has historically constrained mining development, the ministry introduced a cooperative federalism model. States are encouraged to apply for licences and operate through limited liability companies, leading to joint venture investments in states such as Nasarawa, Kaduna, Oyo, and the Federal Capital Territory.
Investment signals are beginning to follow. Lithium processing plants are emerging across the country, a $400 million rare-earth metals facility is in development, and about $1.5 billion in foreign direct investment has been attracted into the sector since 2023. Nigeria’s push for local value addition has also extended beyond its borders, with the formation of the Africa Minerals Strategy Group, which elected Alake as its pioneer chairman.
Despite the progress, officials caution that current revenue still represents only a fraction of the sector’s potential. The uneven monthly remittance pattern underscores how sensitive mining remains to security conditions, infrastructure gaps, and regulatory enforcement.
For policymakers, the 2025 performance offers both validation and warning. Reforms can unlock revenue quickly, but sustaining growth will require stabilising operating conditions and deepening value chains. As reforms are consolidated in 2026, the test will be whether solid minerals can evolve from a volatile revenue contributor into a stable pillar of Nigeria’s non-oil economy.
