Revitalizing Nigeria’s Mining Sector: A Comprehensive Overview of Q1 2025 Achievements
The first quarter of 2025 witnessed significant strides in Nigeria’s mining sector, marked by substantial revenue generation, increased licensing activities, and strategic international collaborations. The Ministry of Solid Minerals Development, under the leadership of Dr. Dele Alake, spearheaded these efforts, aiming to sanitize and invigorate the sector, positioning Nigeria as a global mining powerhouse. A key achievement was the generation of N6.96 billion in mining fees, exceeding expectations and demonstrating the effectiveness of the Ministry’s initiatives to attract investors and promote transparency in the sector. This revenue influx underscores the growing interest in Nigeria’s mineral wealth and the government’s commitment to creating a conducive environment for mining operations.
The surge in revenue was accompanied by a significant increase in licensing activities. The Mining Cadastral Office, the licensing parastatal, processed 955 applications for title grants, resulting in the approval of 651 exploration licenses, 270 small-scale mining leases, 49 quarry leases, and 24 reconnaissance permits. This surge in licensing activities reflects the growing confidence in the mining sector’s potential and the government’s efforts to streamline the licensing process. Furthermore, the Minister approved an additional 867 applications, including 512 exploration licenses, 295 small-scale mining leases, 60 quarry leases, and 5 mining leases, further demonstrating the Ministry’s commitment to facilitating mining operations.
Beyond revenue generation and licensing, the Ministry also focused on enhancing regulatory oversight and conflict resolution. The establishment of 118 new private mineral buying centres across the country signifies a proactive approach to regulating the mineral trade and ensuring responsible sourcing practices. This initiative aims to curb illegal mining activities and promote transparency in the mineral value chain. The Ministry also intensified efforts to resolve conflicts arising from overlapping claims and ownership disputes, demonstrating a commitment to fostering a stable and predictable operating environment for investors.
A cornerstone of the Ministry’s strategy is the establishment of the Nigerian Solid Minerals Corporation (NSMC). This entity is envisioned as a special-purpose vehicle that will propel Nigeria into the ranks of leading global mining nations. The NSMC’s structure is being finalized in collaboration with the Ministry of Finance Incorporated, with a focus on ensuring global competitiveness while leveraging Nigerian expertise and capital. The ownership structure will comprise 25% public offering for Nigerian citizens, 25% government ownership, and 50% private sector investment, fostering both local participation and foreign investment.
International collaborations also played a crucial role in the Ministry’s Q1 2025 achievements. Following a Memorandum of Understanding (MOU) signed between President Bola Tinubu and French President Emmanuel Macron, the French government committed to equipping the laboratory of the Nigeria Geological Survey Agency and providing training for young Nigerian geologists in advanced mining technologies. This collaboration signifies the growing international recognition of Nigeria’s mining potential and the importance of capacity building for sustainable development. Furthermore, the government of Western Australia approved regular training programs for Nigerian mining professionals, with the first batch scheduled to depart the following month.
The Ministry’s emphasis on value addition has also yielded positive results, positioning Nigeria as a leader in African mining. Nigeria assumed the chairmanship of the African Minerals Strategy Group, advocating for local beneficiation and discouraging the export of raw minerals without processing. This leadership role aims to attract investment to Africa and Nigeria, fostering regional development and maximizing the value derived from mineral resources. The commissioning of lithium, bauxite, and gold refining plants within the quarter further demonstrates the Ministry’s commitment to value addition and its potential to transform Nigeria’s mining sector into a globally competitive industry. These multifaceted efforts underscore the Ministry’s commitment to sustainable development, ensuring that Nigeria’s mineral wealth benefits both present and future generations.
