Alake’s solid minerals reforms on track, double revenue base to N70b

The resolve of President Bola Tinubu’s administration to reposition the solid minerals sector as the country’s alternative source of revenue and the introduction of far-reaching reforms and policies in the sector have triggered sectoral revenue increase by triple fold in the last two years.

This submission of operational turnaround in the sector was contained in a statement by the Special Assistant on Media to the Minister of Solid Minerals Development, Segun Tomori in Abuja yesterday.

In an overview review of the activities of the sector since Dr. Dele Alake assumed officeas the Minister of Solid Minerals Development, Tomori noted that the  earnings from the sector rose from N16 billion in 2023 to N38 billion in 2024 and are now on track to more than double within two years.

“It is no happenstance that revenue from solid minerals has surged astronomically since the advent of the President Bola Tinubu administration

“From a paltry N16billion generated from the sector in 2023, it moved to N38bn in 2024 and is now set to cross the N70billion mark under the stellar stewardship of the Minister of Solid Minerals Development, Dr Dele Alake.”

Tomori recalled that upon assuming office, the minister moved swiftly to reposition the mining sector with a seven-point agenda aimed at attracting credible investors and restoring confidence in the sector.

 “Since assuming office, Alake has redirected global attention to the nation’s mining sector in a manner quite unprecedented.

“The part of the reforms included revoking licences held by non-performing operators. In late 2023, 1,633 licences were revoked for default in payment of annual service fees, while another 924 dormant licences were revoked early in 2024 to free up space for serious investors,” he said.

This development has further increased the confidence of the local and foreign investors in the sector, with lithium processing factories emerging across the country and plans underway for a $400 million rare earth metals plant.

“It is estimated that close to $1.5bn in Foreign Direct Investment has been attracted to the sector since 2023,” Tomori said.

The media aide to the minister also highlighted the revision of the guidelines for Community Development Agreements to ensure that the consent of host communities became an integral part of the license application process.

On the disturbing challenge of illegal mining, Tomori said the establishment of a special purpose mining marshals in 2024 had begun to yield results.

“Just over one year after, over 300 illegal miners have been apprehended; about 150 are undergoing prosecution; and 98 illegal mining sites have been recovered,” adding that nationwide satellite surveillance of mining sites is expected to commence in 2026 to strengthen enforcement.

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In order to ensure inclusivity of all tiers of governance in the sector, the minister introduced a cooperative federalism approach that allows states to apply for mining licences and operate as limited liability companies.

“This has produced tremendous results as several states now have joint venture partnerships that have yielded investments in Nasarawa, Kaduna, Abuja, Oyo, amongst others,” he said.

Nigeria’s push for local value addition to refining minerals before exports is gaining continental acceptance, a development that led to the establishment of the Africa Minerals Strategy Group.

“The body of African ministers of solid minerals unanimously elected Dr Alake as its pioneer chairman. This is a testament to how his vision has positioned Nigeria as leading the continent’s mining sector renaissance.”

Tomori said reforms to improve the ease of doing business include the launch of the Nigeria Minerals Decision Support System, a web-based platform that provides investors with access to geo-scientific and geo-economic data, interactive maps and infrastructure details.

He, therefore, said it is no surprise that Nigeria is set to cross the N70billion mark in 2025, noting that though unprecedented. The target is still a drop in the ocean, considering the vast potential of the mining sector.

“The federal government is determined to build on the gains in 2026. We go again in 2026 to surpass this record by consolidating on reforms to ensure solid minerals ultimately become a major contributor to our nation’s Gross Domestic Product,” Tomori added.