The Minister of Solid Minerals Development, Dele Alake, on Thursday said the economic reforms introduced by President Bola Tinubu are beginning to reposition the country’s mining sector and attract new investments into mineral processing and local value addition.
Mr Alake disclosed this at a joint stakeholders’ sensitisation meeting organised by the Nigeria Revenue Service (NRS) and the Ministry of Solid Minerals Development in Abuja on Thursday.
The meeting, themed “From Resource to Revenue: Aligning Solid Minerals Operations with the 2025 Tax Reform Act,” brought together operators, regulators, and industry leaders to strengthen collaboration, improve compliance, and deepen understanding of the new royalty and tax administration framework in the mining sector.
Mr Alake said before the discovery of oil, mining was one of the major pillars of Nigeria’s economy and played a significant role in the country’s early industrial development.
“Our colonial masters built rail lines primarily to support mining activities and move mineral resources. Unfortunately, after independence and the oil boom happened to us, the mining sector collapsed while the nation became heavily dependent on oil revenue and import-driven consumption,” he said.
He noted that for years Nigeria struggled economically because successive administrations lacked the political will and courage to take difficult but necessary decisions.
“Nigeria was borrowing to pay salaries before 2023. There was little room for capital development because resources were being used largely for recurrent expenditure and fuel subsidy payments that became unsustainable.”
The minister said Mr Tinubu immediately moved to block leakages, reform critical sectors of the economy, and lay the foundation for long-term economic growth upon assuming office, noting that the solid minerals sector has now become a major focus of the administration’s economic diversification agenda, with reforms already yielding visible results.
Mr Alake said Nigeria is witnessing unprecedented investment inflows into mineral processing and local value addition.
“We now have a $600 million lithium processing factory awaiting commissioning in Nasarawa State and another $200 million lithium facility near Abuja. Gold processing plants and other mineral beneficiation factories are also springing up across the country and our people are being employed, ” he added.
He emphasised that the federal government is no longer interested in exporting raw minerals without domestic processing and industrial value addition.
“The ministry has introduced reforms aimed at improving ease of doing business, strengthening licensing processes, expanding geoscience data generation, formalising artisanal miners, and sanitising the sector to attract responsible local and foreign investors,” Mr Alake said.
Speaking further Mr Alake said over 300 illegal mining operators have been arrested, including foreign nationals, while more than 150 prosecutions are ongoing.
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He added that over 100 illegal mining sites have been recovered and returned to legitimate owners as part of efforts to restore investor confidence and strengthen lawful operations within the sector.
“Nigeria’s local value addition policy has already attracted over $2.6 billion in mining-related investments within the last two years.”
He stressed that the ongoing reforms are not solely about enforcement and revenue generation but about building a sustainable mining ecosystem capable of creating jobs, boosting exports, increasing government revenue, and driving industrialisation.
Mr Alake commended stakeholders for supporting the ministry’s reforms through compliance with licensing obligations, royalty payments, environmental standards, and responsible mining practices.
“That is why this engagement is important. We want continuous dialogue with operators and stakeholders. Our vision is built on partnership, transparency, education, and shared prosperity because when the sector succeeds, you all win and Nigeria succeeds,” he added.
