Solid Minerals Sector Records 79% Revenue Growth, Posts N68.1bn in One Year

Emmanuel Addeh in Abuja 

Nigeria’s struggling solid minerals sector achieved a historic fiscal milestone in the 12 months of 2025, generating a total revenue of N68 billion during the period, representing a 79.2 per cent increase in revenue increase compared to the N38 billion recorded in 2024.

The data seen by THISDAY was unveiled in a report presented by officials of the Ministry of Solid Minerals Development (MSMD) to the Technical Sub-Committee of the Federation Account Allocation Committee (FAAC) during its meeting in January 2026. 

Titled: “Report on Revenue Collected by the Ministry of Solid Mineral Development for the month of December 2025,” the document provided a granular look at the fiscal trajectory of the sector, seen  as central to the nation’s economic diversification strategy.

However, although a significant jump compared with revenue in the past years, a THISDAY analysis of the revenue stream showed that the total for the year under consideration fell short of the over  N70 billion projected by the ministry in a statement in December.

The Special Assistant on Media to the Minister of Solid Minerals Development, Dele Alake, Segun Tomori had said that the sector’s revenue was set to reach N70 billion in 2025, from the N38 billion in 2024.

“From a paltry N16 billion generated from the sector in 2023, it moved to N38 billion in 2024 and now set to cross the N70 billion mark under the stellar stewardship of the Minister of Solid Minerals Development, Alake,” he was quoted to have said.

However, the journey to the N68.09 billion record began with a relatively stable first quarter. The year opened in January with a collection of N4,175,834,877.91. This was followed by a slight decline in February, which saw N3,782,483,596.42 enter the federation account. But the sector hit its lowest point of the year in March, with revenue dipping to N2,145,558,607.44.

But the second quarter witnessed an explosive recovery that defined the year’s success. April revenue surged to N7,883,905,297.02, more than tripling the previous month’s performance. The momentum peaked in May, which recorded a staggering N9,656,242,898.25, the single highest monthly collection of the year. 

This peak month alone contributed approximately 14.2 per cent of the total annual revenue, with the half-year concluding with June contributing N4,747,362,474.02.

Besides, the third quarter maintained a strong upward trajectory as the ministry’s revenue collection mechanisms intensified. July recorded N5,841,277,270.00, while August saw a further rise to N6,231,166,410.20. The quarter ended with a robust September collection of N7,323,620,919.48, maintaining the momentum from the mid-year surge.

Further analysis indicated that as the year moved into its final stage, October yielded N6,856,944,406.42. However, the final two months showed a tapering effect. November revenue dropped to N5,277,190,149.82, and the year closed in December with a total of N4,174,850,166.24.

The December collection of N4.17 billion represented a 20.9 per cent decrease compared to November’s N5.27 billion. Ministry officials attributed this decline to a decrease in mining activities, specifically citing insecurity in mining regions and the traditional end-of-year holiday period as the primary factors for the slowdown.

“The revenue collection by MSMD into the federation account for the month of December 2025 is N4,174,850,166.24. The Ministry recorded the sum of N1,584,006266.24 from royalty collection, for the month under review

“The sum of N2,590,843,900.00 was realised from fees collection in the month of December 2025. The ministry recorded a positive variance of N1,101,219,590.74 when the monthly collection is compared to the monthly target.

“However there is also a negative variance of N1,102,339,983.58 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 insecurity and the end of the year holidays,” the document showed. Despite this month-on-month decrease, the December figures remained strong relative to the government’s official projections. The ministry’s approved monthly target for December was N3,073,630,575.50. The actual collection of N4,174,850,166.24 resulted in a positive budget variance of N1,101,219,590.74, meaning the sector outperformed its monthly goal by 35.8 per cent .

According to the FAAC material, the revenue generated by the ministry is categorised into two primary streams: Royalties from minerals used and sold, and fees derived from annual service charges and the registration and issuance of mining licenses.

For the month of December, the revenue mix was dominated by fees. A total of N2,590,843,900.00 was realised from fees, representing 62 per cent of the month’s total intake. This was a significant increase from November’s fee collection of N1.84 billion.

Conversely, royalties faced more challenges, as the ministry recorded N1,584,006,266.24 from royalties in December, which was a sharp decrease from the N3,435,213,649.82 collected in November. This specific drop in royalties was the primary driver of the overall monthly decline, reflecting the impact of reduced extraction activities during the holiday season.

In all, one of the most significant highlights of the 2025 report was the over-performance against the ministry’s annual budget. The MSMD’s approved revenue budget for the entire 2025 fiscal year was set at N36,883,566,905.96.

By achieving a total of N68,096,437,073.22, the ministry outperformed its annual budget by N31,212,870,167.26, or approximately 84.6 per cent . The level of growth, moving from a N38 billion baseline in 2024 to nearly N70 billion in 2025, appeared to underscore the increasing formalisation of the mining sector.

As Nigeria transitions into the 2026 fiscal year, the 79 per cent annual growth recorded in 2025 sets a new benchmark for the solid minerals sector.

 While monthly volatility remains a factor, driven largely by seasonal trends and security concerns, the year-on-year trajectory indicated that the sector is becoming a more substantial contributor to the federation account.