FG Reforms Drive $2bn Mining Investment
Nigeria is finally moving beyond the pit-to-port model of mineral extraction. Dele Alake, the Minister of Solid Minerals Development, says reforms are turning the sector from a chaotic, informal trade into a structured industry. These changes helped generate ₦68.1 billion in revenue during 2025 alone. The government now mandates that mining leases must include plans for local processing and value addition. This policy aims to stop the export of raw wealth while the country stays poor. Investors have responded to this new clarity with over $2 billion in midstream projects.
The current strategy focuses on 44 commercially viable minerals such as gold, lithium, and iron ore. In the past, the sector suffered from weak formalisation and a lack of reliable geological data. Modernisation efforts now use a digital cadastre platform to manage land titles with greater transparency. Stricter administration ensures that those who hold titles actually develop them instead of sitting on assets. Nigeria wants to capture the full economic chain from the ground to the factory. Large processing plants are already springing up to handle lithium and steel production.
Specific investments show the scale of this industrial shift. A $600 million lithium plant and a $200 million refinery near Abuja represent the new midstream focus. Nasarawa is hosting a $600 million project while Kogi prepares for a $1 billion iron ore-to-steel initiative. These projects prove that capital will follow clear rules and enforced standards. The goal is to ensure that minerals leave Nigeria as finished or semi-finished goods. This creates local wealth rather than just a hole in the ground.
Small-scale mining remains a challenge that the ministry intends to solve through consolidation. Thousands of undocumented miners currently work in small, poorly equipped groups. The government plans to merge these into large cooperatives of up to 5,000 members per local area. This scale makes it easier to attract formal investment and justify state support for equipment. It also helps the state monitor environmental damage and curb illegal activity. Moving miners into the formal net is the only way to sanitise the trade.
Youth employment is a central pillar of this new mining architecture. The ministry is pushing for the deployment of young professionals to manage these expanded cooperatives. Geologists, engineers, and safety experts are needed to bring technical rigour to local operations. This approach addresses the high unemployment rate while improving operational standards in rural areas. By professionalising the workforce, the government hopes to make mining a career rather than a desperate hustle. This transition is vital for the long-term stability of the sector.
The 2007 Minerals and Mining Act is currently under review to better align with global expectations. Officials believe the current law needs more teeth to handle the complexities of modern industrial mining. Nigeria is competing with other mineral-rich nations for a finite pool of global capital. Consistency in policy is the only way to keep the $2 billion momentum alive. The sector is no longer just about digging. It is about building a foundation for broader national industrialisation.