Solid Minerals Delivered N63.92bn to Federation Account in 11 Months

•Insecurity constrains additional sector contribution

Emmanuel Addeh in Abuja

Nigeria’s solid minerals sector remitted a total of N63.92 billion into the Federation Account over the January to November 2025 period, underscoring both the growing fiscal relevance of the extractive sub-sector and the volatility that continues to shape its contribution to national revenue.

The month-by-month inflows, as captured in official remittance records presented to the Federation Account Allocation Committee (FAAC) this December, showed a year defined by sharp fluctuations, a strong second-quarter rebound, and a late-year moderation linked to security and operational constraints.

The year opened with January remittances of N4.18 billion, accounting for about 6.5 per cent of the cumulative inflow. This was followed by N3.78 billion in February, representing roughly 5.9 per cent of the total.

Together, the first two months contributed N7.96 billion, or just under 12.5 per cent of the eleven-month take, pointing to a relatively modest start for the sector at a time when mining activities are typically slowed by logistics and financing cycles.

March recorded a further dip, with remittances falling to N2.15 billion, equivalent to 3.4 per cent of total collections. This marked the weakest monthly performance of the year and reflected a slowdown in production and export activity across several mining corridors.

By the end of the first quarter, cumulative inflows stood at N10.10 billion, barely 15.8 per cent of the eventual January–November total, highlighting how back-loaded the sector’s revenue performance would become.

However, a decisive turnaround began in April, when remittances surged to N7.88 billion. This single month contributed about 12.3 per cent of the year’s inflows and more than tripled the March figure.

An analysis of the data by THISDAY showed that the rebound gathered momentum in May, which emerged as the strongest month of the year with N9.66 billion paid into the Federation Account. May alone accounted for just over 15.1 per cent of total remittances, cementing the second quarter as the fiscal high point for the solid minerals industry.

In the same vein, June sustained the improved performance, although at a slower pace, with N4.75 billion remitted, representing 7.4 per cent of the total. By the end of the first half of the year, aggregate inflows had risen to approximately N32.34 billion. This meant that more than half of the entire January–November remittance, around 50.6 per cent, was delivered between April and June, underlining the outsized importance of the second quarter to annual revenue outcomes.

The third quarter opened on a stable footing, with July recording N5.84 billion in remittances and contributing 9.1 per cent of the total. August followed with N6.23 billion, equivalent to 9.8 per cent, reflecting continued strength in mineral sales and improved compliance by operators. September extended this trend, posting N7.32 billion, or 11.5 per cent of cumulative inflows, making it the third-best performing month of the year after May and April.

October maintained relatively high levels, with N6.86 billion remitted, accounting for 10.7 per cent of the January–November total. However, November inflows eased to N5.28 billion, representing about 8.3 per cent of total collections. While still substantial, the November figure fell below the mid-year highs, reflecting disruptions in mining activity and logistics.

But official revenue notes attributed the late-year moderation partly to a decline in mining operations triggered by a sudden rise in insecurity across parts of the country. Despite this, November’s remittance still compared favourably with early-year levels and remained well above the March low.

“The revenue collected by MSMD into the Federation Account for the month of November 2025 is N5,277,190,149.82. The ministry recorded the sum of N3,435,213,649.82 from royalty collection, for the month under review.

“The sum of N1,841,976,500.00 was realised from fees collection in the month of November 2025. The ministry recorded a positive variance of N2,203,559,574.32 when the monthly collection is compared to the monthly target.

“However there is a negative variance of N1,579,754,256.60 when you compare the current month collection against last month collection. The decrease in collection can be attributed to decrease in mining activities due to sudden rise of insecurity across the nation,” a note to the FAAC presentation added.

In proportional terms, five months, including April, May, August, September and October, together generated roughly 59.4 per cent of the entire eleven-month inflow. May’s N9.66 billion alone exceeded the combined remittances of January and March, illustrating the scale of volatility within the sector.

Furthermore, the pattern of remittances reinforced the view that while solid minerals are increasingly contributing to national revenue, the sector remains highly sensitive to security conditions, infrastructure availability and regulatory enforcement.