Key Points

• Mining income went from N16 billion in 2023 to more than N70 billion in 2025.
• Government crackdowns made illegal mining less common and opened up locations to legitimate investors again.
• New rules are bringing in foreign money and encouraging Nigeria to process minerals locally.

Nigeria’s solid minerals sector is beginning to deliver results after years of weak output and lost revenue.

The Ministry of Solid Minerals Development says that the government made more than N70 billion from mining in 2025, which is more than four times what it made in 2023.

Solid Minerals Development Minister Dele Alake made a number of adjustments to the rules and how they are enforced from 2023.

This led to a 337 percent increase in two years. The sector is still minor in Nigeria’s economy, but experts say this rise is a sign that things are changing.

A Sector That Has Been Stuck for a Long Time

Nigeria has a lot of minerals, such as gold, lithium, limestone, and others, but for a long time, its mining sector wasn’t as good as it could have been.

Illegal mining, poor legislation, hoarding permits, and disputes between communities prohibited big investors from coming. Even if the country’s income was low, oil was remained its main source of income.

It has grown tougher to keep that mismatch going when oil prices go up and public debt goes up.

The mining reforms are part of a bigger plan to make the government’s income more varied and less reliant on oil exports.

Revenue Growth Driven By Policy Changes

According to Segun Tomori, the solid minerals minister’s media assistant, income went up to N38 billion in 2024 and then to N70 billion in 2025.

He added that the growth was because of a seven-point reform plan that aimed to make things more open, have greater oversight, boost investor confidence, and add value to the local economy.

Getting rid of operators who weren’t working was one of the first things that needed to be done.

The ministry took away 1,633 mining permits in late 2023 because the companies didn’t pay for their services.

In early 2024, 924 additional licenses that weren’t being utilized were taken away. Officials claim the change was needed to let serious investors in instead of license holders who merely wanted to earn money.

Communities And Consent Take Centre Stage

Mining companies and the towns where they work have had challenges that have stopped work several times.

The ministry modified the rules for Community Development Agreements to make it clear that permits can’t be given out until the community agrees.

The goal is to lower crime, vandalism, and shutdowns by making sure that mining on people’s land is good for them.

Crackdown On Illegal Mining

Illegal mining is still a huge problem in the sector since it costs money and makes things less safe.

The government sent mining marshals to the area in 2024 for this reason.The Ministry of Solid Minerals Development reported that in 2025, mining brought in more than N70 billion for the government. That is more than four times what it made in 2023.

Starting in 2023, Dele Alake, the Minister of Solid Minerals Development, modified the rules and how they are enforced in many ways.

This led to a 337 percent increase in just two years. Even while the sector is still minor in Nigeria’s economy, experts argue that this increase is a sign that things are changing.

Within a year, more than 300 illegal miners were arrested. About 150 cases are currently in court, and authorities say 98 illegal mining sites have been recovered.

Satellite monitoring of mining locations is scheduled to begin in 2026 to strengthen enforcement and tracking.

Within a year, more than 300 illegal miners were arrested. About 150 cases are currently in court, and authorities say 98 illegal mining sites have been recovered.

Satellite monitoring of mining locations is scheduled to begin in 2026 to strengthen enforcement and tracking.

Redefining Federal And State Roles

Disputes over who controls mining resources have long strained relations between Abuja and state governments. The ministry’s answer has been a cooperative federalism model.

States are encouraged to apply for mining licences and operate through limited liability companies.

This framework has already led to joint venture investments in Nasarawa, Kaduna, Oyo, and the Federal Capital Territory, according to the ministry.

Investment And Value Addition Gather Pace

The reforms appear to be attracting investor interest. Lithium processing plants are taking shape in several locations, while a $400 million rare-earth metals facility is in development.

The ministry estimates that about $1.5 billion in foreign direct investment has entered the sector since 2023.

Nigeria has also pushed for more local processing rather than exporting raw minerals. That effort contributed to the creation of the Africa Minerals Strategy Group, where Alake now serves as pioneer chairman.

Despite the sharp revenue rise, solid minerals still contribute only a small fraction to Nigeria’s Gross Domestic Product.

Ministry officials say the focus in 2026 will be on consolidating reforms, scaling production, and deepening value chains.

For a country searching for sustainable revenue outside oil, the mining sector’s recent numbers suggest momentum is building.

Whether it becomes a stable pillar of the economy will depend on how consistently the reforms are enforced in the years ahead.