Nigeria Recording Increase in Revenue from Solid Minerals Sector, Says Alake

• Stakeholders seek expansion of cooperatives 

Onyebuchi Ezigbo in Abuja

The federal government has said the total 2025 revenue from Solid Minerals reached about N68.1 billion, while remittances into the Federation Account amounted to N63.92 billion in the first eleven months of 2025.

The progress report came just as stakeholders at the Africa Commodities Conference and Exhibition (ACCE) in Abuja proposed measures to increase local participation in the Solid minerals Industry through expansion and empowerment of cooperatives.

 In a paper presented at the Africa Commodities Conference and Exhibition (ACCE) organized by Mica Equity Allocation Limited in Partnership IPW, the Federal Ministry of Solid Minerals Development and the Solid Minerals Development Fund in Abuja on Wednesday, Minister of Solid Minerals Development, Mr. Dele Alake said that government’s reforms are already yielding positive results.

He said the total 2025 revenue from Solid Minerals reached about N68.1 billion, while remittances into the Federation Account amounted to N63.92 billion in the first eleven months of 2025.

He also said that Royalties paid rose by N19.3 billion, or 110.1 percent, while Mining Cadastre Office licensing revenue increased by N6.51 billion, or 107%, to N12.58 billion.

In addition, the Minister said that over 250 new cooperatives had been registered to absorb artisanal miners into the formal economy.

“Those are not yet the numbers of a mature mining giant, but they are the numbers of a sector that is gaining fiscal traction through reform, enforcement, and better administration,” he said.

The minister, represented Mr. Etibo Umoakpan also noted the country witnessed the entry of 142 new mining companies, a 93.27 percent rise in Private Mineral Buying Centre registrations from 223 to 431, and an increase of 513,600 tonnes in mineral output, equivalent to 343.8 percent growth over the past few years.

In terms of contribution to economic improvement, the minister said that recent data places the contribution of Nigeria’s solid minerals sector in the range of approximately 1.5 percent to 1.8 percent of GDP, “reflecting a gradual but important improvement from historically negligible levels”.

Alake however said that despite the achievements in the sector, some challenges still remain, adding that infrastructure to mining corridors is still insufficient, while geological confidence is still below what top-tier investors expect in many jurisdictions.

“Environmental and social governance must be enforced more consistently. Community trust must be deepened through stronger implementation of Community Development Agreements.

“We have strengthened enforcement against illegal mining. We have expanded formalisation among artisanal operators. We have elevated value addition from a slogan to a licensing principle,” he said.

Stakeholders at the ACCE conference said there is need to widen the scope of participation of indigenous operators in the country’s solid mineral development sector through training, capacity development and provision necessary equipment.

Speaking on the aim of the conference, the Convener of Africa Commodities Conference and Exhibition (ACCE), Michael Akueche, said they were focusing on empowerment of five key professional categories, geologists, mineral processing engineers, mining engineers, health, safety and the environment professionals, as well as the artisanal, small scale mining compartment of the solid mineral industry.

He said there is need to expand the subscriber base of the cooperative groups operating in the Solid Minerals sector to enable them have access to capital intensive equipment needed for mining operations.

“What we’re trying to do is that, as part of the 7-Point agenda of the ministry of the solid mineral development and the Renewed Hope agenda of Mr. President, which is that the undocumented miners and illegal miners,

“Look at the length and breadth of our nation, there are still lots of illegal miners going on, and the government is saying, why don’t you set up a cooperative and operate in a regulated environment?

“And as a matter of fact, a number of people were able to set up cooperatives, but we discovered two challenges with them.

“Number one is that they have challenges with mining equipment, mineral processing equipment. We realize that it is difficult because the scope of their membership is very small, and these equipment are very costly, and had several meetings trying to explore for this solution,” he said.

Also making a presentation at the conference, the Executive Secretary of the Solid Minerals Development Fund (SMDF), Hajiya Fatima Umaru Shinkafi said the agency was established to assist local operators in the Solid Minerals sector to assess funding to grow their businesses.