In a significant boost to Nigeria’s mining sector, the federal government has reported a substantial increase in mining fees and a surge in new private mineral buying centres. Minister of Solid Minerals Development, Dele Alake, unveiled these figures at the second Annual Mining Conference organised by Businessday newspaper in Abuja. The data, reflecting the first quarter of the year, paints a picture of a sector on the rise, driven by heightened awareness and investor interest.
The Ministry collected approximately N6,957,826,200 billion in mining fees, a testament to the growing activity and investment in the sector. This revenue was generated from 955 applications for title grants, with the majority—651—being for exploration licenses. The remaining applications were for small-scale mining (270), quarrying (49), and reconnaissance permits (24). The Minister approved 867 applications, demonstrating the government’s commitment to facilitating mining activities.
The Mining Cadastral Office (MCO), the licensing parastatal, has also intensified its conflict resolution efforts to mitigate disputes over ownership and overlaps. This is a critical step in ensuring a stable and predictable operating environment for investors.
One of the most significant announcements was the progress made towards establishing the Nigerian Solid Minerals Corporation. Alake described the corporation as a special-purpose vehicle designed to propel Nigeria into the global mining arena. “We are finalising its structure in partnership with the Ministry of Finance Incorporated (MOFI),” he stated. The corporation will be globally competitive, rooted in Nigerian expertise and capital, with 25% equity reserved for citizens, 25% for the government, and 50% for the private sector.
The Minister also highlighted the ministry’s impressive revenue generation, surpassing the 2024 projected revenue of N11 billion by N27 billion, reaching a total of N38 billion. This financial performance underscores the sector’s potential and the government’s effective management.
International engagements have also played a pivotal role in the sector’s development. The French government has committed to equipping the laboratory of the Nigeria Geological Survey Agency (NGSA) and training young geologists abroad in modern mining technologies. This follows an MOU signed by President Bola Tinubu and French President, Emmanuel Macron. Additionally, the Government of Western Australia has approved regular training for Nigerian mining professionals, with the first batch of trainees set to depart next month. British and Saudi Arabian investors are also poised to invest across the mineral value chain, and Nigeria recently signed an MOU on capacity building in the geology field with South Africa.
These developments signal a transformative phase for Nigeria’s mining sector. The increased revenue, strategic partnerships, and the establishment of the Nigerian Solid Minerals Corporation are set to enhance the sector’s resilience and global competitiveness. As Alake aptly put it, “We are building a resilient mining sector, and these steps are crucial in achieving that goal.”
The news from the conference is likely to spark debate and discussion within the industry. How will the establishment of the Nigerian Solid Minerals Corporation impact existing mining operations? What role will international partnerships play in the sector’s growth? And how will the government balance the interests of citizens, the government, and the private sector in the new corporation? These are questions that will shape the development of the sector in the coming years. The mining industry in Nigeria is at a crossroads, and the decisions made today will determine its trajectory for decades to come.
