Abuja: Dr. Dele Alake, the Minister of Solid Minerals Development, has announced that Nigeria’s solid minerals sector has attracted over $800 million in processing projects in 2025. This development was shared during an interview for an upcoming State House documentary, commemorating President Bola Tinubu’s second anniversary in office.
According to News Agency of Nigeria, Alake emphasized that the significant revenue generation was a result of President Tinubu’s new policies focusing on local value addition and a tightened licensing regime. The sector generated over ?38 billion in revenue in 2024, an impressive increase from ?6 billion the previous year, despite receiving only 18 percent of its ?29 billion budgetary allocation. The minister highlighted that investor interest has surged due to these mining sector reforms.
Alake detailed the upcoming projects, including a 600 million Lithium processing plant near the Kaduna-Niger border, set for inauguration this quarter, and a $200 million Lithium Refinery near Abuja, nearing completion. Additionally, two processing plants in Nasarawa are scheduled for inauguration before the third quarter of 2025. These investments align with the administration’s policy that no mining licenses will be issued without a clear plan for local processing.
The minister reported that the Mining Cadastral Office (MCO) and the Mines Inspectorate have already recorded ?6.9 billion and ?7 billion in revenue, respectively, in the first quarter of 2025. He projected 2025 to be a landmark year, with a budget allocation of ?1 trillion for mineral exploration aimed at generating internationally certified geological data.
Highlighting the importance of exploration, Alake pointed out Nigeria’s previous underinvestment compared to other African nations. He stated that credible data is crucial for attracting serious investors and emphasized turning mineral wealth into domestic economic value, including jobs, technology, and manufacturing.
As part of its seven-point agenda, the minister has taken steps to combat illegal mining and formalize artisanal activity. Over 300 illegal miners were arrested last year, with 150 prosecutions ongoing and nine convictions secured. The government is also empowering locals by formalizing them into cooperatives, making them eligible for finance and revenue sharing, with over 250 mining cooperatives established nationwide.
Alake revealed that Nigeria now leads the African Mineral Strategy Group, a continental bloc aimed at ensuring local value addition and fairer mineral trade deals. This leadership was cemented at the 2024 Future Minerals Conference in Riyadh, where Nigeria asserted its stance against exporting raw materials without domestic beneficiation.
Investor confidence is rising, with interest from global players, including officials from the UK, US, Saudi Arabia, and UAE. Alake shared that the former British Deputy Prime Minister invited him to Downing Street to discuss interest in Nigerian lithium, as the U.S. seeks to diversify from China.
With new revenue streams, foreign direct investment, tightened regulation, and a clear path toward industrialization, Nigeria’s solid minerals sector has become a key component of the Tinubu administration’s economic diversification strategy. Alake concluded by emphasizing the sector’s newfound vitality and the unprecedented confidence and value returning to Nigerians from their resources.