Foreign Investors Flock to Nigeria Amid Tinubu's Mining Sector Reforms

• President Tinubu's mining reforms have driven a dramatic increase in sector revenue, jumping from ₦6 billion to ₦38 billion in just one year
• Over $800 million in foreign investments have poured into Nigeria’s solid minerals sector, with major lithium processing plants already in progress
• Minister Dele Alake credited the success to tightened licensing, mandatory local processing, and aggressive action against illegal mining

Nigeria’s solid minerals sector is undergoing a transformation, with recent reforms under President Bola Tinubu’s administration triggering a sixfold revenue increase and attracting over $800 million in foreign investment within a year.

Minister of Solid Minerals Development, Dr. Dele Alake, disclosed the figures during a feature interview for a State House documentary marking the President’s second year in office.

According to Alake, the sector generated ₦38 billion in revenue in 2024—up from ₦6 billion in the previous year—despite receiving only 18% of its ₦29 billion budget allocation.

Mining ministry records success after new reforms

Central to the surge is a strategic overhaul that compels mining firms to process raw materials locally.

Alake explained that no mining license is now issued without a detailed plan for domestic beneficiation.

“The days of moving raw minerals from pit to port are over,” he said, citing this as a major factor in Nigeria’s growing appeal to investors.

Among the major projects cited are a $600 million lithium processing plant at the Kaduna-Niger border, set for commissioning this quarter, and a $200 million lithium refinery near Abuja nearing completion.

Two more plants in Nasarawa are scheduled to go live before the end of Q3 2025.

N1 trillion budgeted for exploration

The Minister also revealed a ₦1 trillion budget allocation targeted at comprehensive mineral exploration in 2025.

He criticized Nigeria’s historical underinvestment in exploration, noting the country had previously spent just $2 million—far behind peers like Côte d'Ivoire and South Africa. “No serious investor will touch your sector without credible data,” Alake stressed.

Further gains are emerging from regulatory improvements. In the first quarter of 2025 alone, the Mining Cadastral Office and the Mines Inspectorate jointly recorded nearly ₦14 billion in revenue.

FG clampdowns on illegal miners

To curb illegal mining, the government has adopted a dual-pronged approach, combining enforcement with community engagement. Over 300 illegal miners were arrested last year, 150 prosecutions are ongoing, and nine convictions have been secured so far, including foreign nationals.

Alake added that more than 250 cooperatives have been formed to formalize artisanal miners and provide them with access to credit and structured income.

Nigeria’s influence in regional mining policy is also growing. The country now chairs the newly established African Mineral Strategy Group, an alliance formed after the 2024 Future Minerals Conference in Riyadh to promote fairer mineral trade and local processing across the continent.

With global interest mounting—especially from the UK, US, Saudi Arabia, and the UAE—Nigeria appears to be repositioning itself as a key player in the global mineral economy.

Tinubu is doing a wonderful job - Afenifere

Earlier, Legit.ng reported that veteran Yoruba leader and Afenifere elder statesman, Pa Reuben Fasoranti, had expressed confidence in President Bola Tinubu’s stewardship of the country, saying the President has gone beyond his expectations since assuming office.

Fasoranti made this known on Thursday during a visit by Nigeria’s First Lady, Senator Oluremi Tinubu, to his residence in Akure, the capital of Ondo State.

Source: Legit.ng