Business - 9 hours ago

Solid Minerals Exports Hit ₦354bn as Nigeria’s Mining Revenue Grows

Nigeria’s solid minerals sector recorded stronger export earnings in 2025, raising fresh hopes for the country’s non-oil revenue drive.

Solid minerals exports rose to ₦354 billion in 2025, up from ₦117.29 billion in 2023. The sector also recorded ₦199.6 billion in exports in the first nine months of 2024, with full-year 2024 exports estimated above ₦266 billion.

The latest numbers show that mining is starting to gain stronger attention after years of underdevelopment.

Revenue to Federation Account Rises

The sector also delivered more revenue to the Federation Account.

Revenue from solid minerals rose from ₦16 billion in 2023 to ₦38 billion in 2024. It later climbed above ₦70 billion in 2025.

Fatima Shinkafi, Executive Secretary and Chief Executive Officer of the Solid Minerals Development Fund, disclosed the figures at the maiden Annual Lecture of the Faculty of Physical and Earth Sciences, University of Lagos.

She said the performance reflects the impact of reforms under the Federal Government’s plan to raise mining’s contribution to GDP from below 1% to 3% by 2030.

Why the Growth Matters

Nigeria has long depended on oil for revenue and foreign exchange. But oil earnings remain exposed to crude theft, production shortfalls and global price shocks.

Solid minerals offer another path.

Nigeria has more than 44 commercially viable minerals across over 500 locations. These include gold, lithium, iron ore, coal, bitumen, barite and gemstones.

Yet the sector remains far below its potential. Poor data, illegal mining, weak infrastructure and limited processing capacity have held it back for decades.

Reforms Begin to Show Results

The Federal Government’s mining reform agenda, launched in September 2023, focuses on stronger governance and private investment.

The agenda includes plans to establish the Nigerian Solid Minerals Corporation, improve geoscience data, formalise artisanal mining, tackle illegal mining and revoke dormant licences. It also promotes local value addition.

These reforms matter because Nigeria cannot build a serious mining economy on raw exports alone.

The country needs processing, refining and industrial use of minerals to create jobs and retain more value locally.

Mining Attracts Fresh Investment

The sector has also attracted about $2.6 billion in fresh investment commitments since 2023.

This includes a $1.3 billion alumina refinery with a 1.5 million-tonne capacity, described as the largest mining investment in Nigeria’s history.

That kind of investment could change the sector if execution matches the announcement.

It could also support Nigeria’s goal of building stronger value chains around minerals rather than exporting raw materials with limited domestic benefit.

Mining Outpaces Wider Economy

The solid minerals sector recorded 33.5% real growth in 2025, far above Nigeria’s overall economic growth of 3.9%.

This shows that mining has become one of the faster-growing parts of the economy.

However, the sector still has a small share of national exports. Shinkafi said solid minerals exports accounted for about 0.4% of Nigeria’s total exports and about 3% of non-oil exports in 2025.

That means the sector is growing, but it still has a long way to go.

Expert View

Nigeria’s solid minerals sector is finally showing signs of movement, but the country must not confuse export growth with full industrial transformation.

The ₦354 billion export figure is encouraging. The rise in federation revenue also shows better collection and stronger oversight.

But Nigeria needs more than higher export numbers. It needs local processing, transparent licensing, reliable mining data and stronger security around mining sites.

Lithium, gold, iron ore and other minerals can support industrial growth. But they can also become another missed opportunity if Nigeria repeats the old oil-sector mistake of exporting raw resources without building value at home.

The next test is clear. Government must turn reforms into bankable projects, credible data and investor confidence.