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Mining reforms attracted $800m investments in 2024 – FG - PUNCH
Minister of Solid Minerals Development, Dele Alake, has said that the country attracted over $800 million in processing investments in its solid minerals sector last year.
He said this surge is attributed to the Tinubu administration’s policy shift, favouring in-country value addition and stricter licensing requirements.
Alake also revealed that sector revenue climbed to more than N38 billion in 2024, up from N6 billion the previous year, despite the ministry receiving only 18 percent of its N29 billion budget allocation.
This was disclosed in a statement made available to journalists on Sunday by the Special Adviser to the President on Information and Media Strategy, Bayo Onanuga.
The Minister made these remarks during a featured interview for an upcoming State House documentary marking President Tinubu’s second year in office.
Alake explained that the reforms have led to a marked increase in investor interest.
He pointed to several major projects now underway, including a $600 million lithium processing plant located near the Kaduna Niger border, scheduled for commissioning this quarter.
He noted that a $200 million lithium refinery near Abuja is nearing completion, and two more processing facilities in Nasarawa are expected to begin operations before the third quarter of 2025.
“These investments follow the administration’s insistence that no miner gets a licence without a clear local processing plant. The days of exporting raw minerals from pit to port are over.
“When we resumed, the entire sector generated N6 billion annually. By the end of 2024, we hit N38 billion. And this was with just 18 percent of our N29 billion budgetary allocation released. It shows how effective our policy framework has been,” said Dr Alake.
He further disclosed that in the first quarter of 2025 alone, the Mining Cadastral Office and the Mines Inspectorate recorded revenues of N6.9 billion and N7 billion respectively.
Looking ahead, the Minister projected that 2025 would be a landmark year for the industry. He said that N1 trillion has been allocated to mineral exploration, aimed at generating certified geological data that meets international standards.
“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 stated.
“We are now focused on turning our mineral wealth into domestic economic value, jobs, technology, and manufacturing,” he added.
As part of a comprehensive reform agenda, Alake said the ministry has taken firm steps to tackle illegal mining and integrate informal miners into the formal economy.
He confirmed that over 300 illegal miners were arrested last year. Of those, 150 cases are currently being prosecuted, and nine convictions have been secured, including some involving 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.
According to him, till date, more than 250 mining cooperatives have been formed across the country to absorb informal miners into structured operations.
The Minister also announced that Nigeria now leads the newly created African Mineral Strategy Group, a continental platform designed to promote value addition within Africa and ensure more equitable mineral trade agreements.
“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.”
Alake also spoke about growing international interest in Nigeria’s mineral potential.
He said senior officials from the United Kingdom, United States, Saudi Arabia, and the United Arab Emirates have all expressed keen interest, particularly in lithium and other critical resources.
“The former British Deputy Prime Minister personally invited me to Downing Street to discuss their interest in Nigerian lithium,” Alake revealed.
“The U.S. is also looking to diversify from China and sees Nigeria as a viable alternative.”
He concluded that with rising revenues, increased foreign investment, stronger regulations, and a clear industrialisation roadmap, the solid minerals sector has become central to the Tinubu administration’s economic diversification strategy.
“Nigeria has not had it this good in the solid minerals sector.
“We’re restoring confidence, building data, enforcing the law, and returning value to Nigerians from their resources,” the Minister said.
Alake concluded by stating that the mining cadastral office received over 10,000 licence applications from both local and international investors this quarter, highlighting the renewed energy and investor confidence brought into the sector under President Tinubu’s administration.
