Why mineral sector revenue dropped by N1.3bn in November – Report

Revenue generated from solid minerals dropped to N5.27bn in the month of November from the N6.85bn that was collected in October. According to documents submitted to the Federation Account Allocation Committee (FAAC) by the Federal Ministry of Solid Minerals Development, the reduction was attributed to “decrease in mining activities due to sudden rise of insecurity […]

Revenue generated from solid minerals dropped to N5.27bn in the month of November from the N6.85bn that was collected in October.

According to documents submitted to the Federation Account Allocation Committee (FAAC) by the Federal Ministry of Solid Minerals Development, the reduction was attributed to “decrease in mining activities due to sudden rise of insecurity across the country.”

The document however said the ministry beat the monthly target of N3bn given to it.

 

Ministry generates N63.92bn in 11 months

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The document also showed that the ministry generated the sum of N63.92bn from January to November 205.

A breakdown indicated that it generated N4.17bn in January which dropped to N3.78bn in February and N2.14bn in March.

The revenue, however, increased to N7.88bn in April and 9.65bn in May.

It further dropped to N4.74bn in June but increased to N5.84bn in July then N6.23bn in August.

September also saw an increase to N7.32bn but dropped to N6.85bn in October and N5,27bn in November.

However, the computation of these figures showed a total sum of N58.644bn and not the N63.92bn contained in the document.

The revenue generated shows the ministry is on course to surpass the N16bn it generated in 2023 and N38bn it generated in 2024.

 

Sector to triple revenue under current reforms — FG

But the federal government had expressed determination to reposition the solid minerals sector as an alternative source of revenue by tripling the revenue it currently generates.

A statement by Segun Tomori, a Special Assistant on Media to the Minister of Solid Minerals Development, Dele Alake, said since 2023 there has been a surge in revenue which reflects the renewed focus of the Tinubu administration on unlocking the potential of the mining sector.

Tomori explained that upon assuming office, the minister introduced a seven-point agenda aimed at attracting credible investors, restoring confidence and repositioning the sector for sustainable growth.

He noted that part of the reforms involved cleaning up the sector through the revocation of licences held by non-performing operators. In late 2023, he said 1,633 licences were revoked due to default in payment of annual service fees, while another 924 dormant licences were withdrawn in early 2024 to create opportunities for serious investors.

Tomori added that these measures have boosted both local and foreign investor confidence, leading to the emergence of lithium processing factories across the country, as well as plans for a $400 million rare earth metals processing plant.

He said the renewed interest and rising revenue figures underscore the growing role of the solid minerals sector in Nigeria’s economic diversification drive.

“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.

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 geoscientific and geoeconomic data, interactive maps and infrastructure details.

He, therefore, said it is no surprise that Nigeria is set to cross the N70bn 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.