Nigeria’s Mining Sector Sees Revenue Surge with New Discoveries
Nigeria’s solid mineral sector has made remarkable strides, particularly following the discovery of a polymetallic mineral province in Kaduna State. Recent reforms have boosted mining revenues significantly, soaring from approximately 6 billion naira to over 70 billion naira in just a few years.
Minister Highlights Exploration Success
During the opening session of the African Natural Resources and Energy Investment Summit (AFNIS 2026) in Abuja, Dele Arake, the Minister of Solid Minerals Development, emphasized the critical advancements made in mineral exploration. The Nigeria Geological Survey Agency (NGSA) has confirmed the presence of mineral zones in Kaduna, enriched with platinum group metals, gold, nickel, copper, lithium, and rare earth elements.
Private Sector Drives Discoveries
Arake noted that the significant discoveries were facilitated by a private sector operator, aided by technical support from the NGSA. This partnership showcases an increasing alignment between the Nigerian government and private investors within the mining industry.
Lithium Reserves Unveiled
In a related development, Steron Mining and Company Limited announced the estimation of lithium reserves amounting to 3.3 million tonnes at its Abuja site, revealed during a site visit for summit participants. The company’s Managing Director, Abu Omar, indicated that these figures stem from comprehensive exploration, drilling, and geological mapping endeavors.
Encouraging Investment Opportunities
Omar highlighted that the total mineral resources at the site are estimated at 94.8 million tonnes, projected to include substantial lithium and granite deposits. He remarked that the recent discovery in Kaduna coincides with heightened investor interest in Nigeria’s mining sector, driven by changes aimed at enhancing value addition, tightening regulations, and drawing in foreign capital.
Reforms Pave the Way for Economic Diversification
Minister Arake pointed out that the Tinubu administration has strategically repositioned the solid minerals sector as a cornerstone for economic diversification, prioritizing local processing over raw exports. To address historical challenges, including weak enforcement and informality in the sector, the government has cancelled over 3,000 dormant mineral licenses while implementing strict compliance measures for operational licenses.
Investment in Processing Facilities
In a bid to transform Nigeria’s mining landscape, applicants for new mining leases are now mandated to submit comprehensive value addition plans. This shift aims to nurture investments that lead to the establishment of processing plants, refineries, and industrial clusters. Ongoing reforms are already attracting significant capital inflows into the lithium processing and refining sectors, with major projects underway, including an $800 million lithium processing plant and a $1 billion iron ore to steel initiative in Kogi State.
Call for Continental Cooperation
As Nigeria continues to advance its mining reforms, Minister Arake also urged for enhanced cooperation among African nations to develop mineral resources efficiently. He reiterated the need for Africa to transition from fragmented resource extraction toward comprehensive industrial value chains. The focus must shift to how the continent can transform its vast resources into sustainable economic power.
Comments from the President
President Bola Tinubu reinforced these sentiments by calling for a united approach to harness Africa’s rich natural resources, emphasizing the necessity for the continent to move beyond raw material exports. He underlined the importance of policies that attract investment while fostering transparency and cooperation across borders, creating a stronger intra-African economic landscape.
