Tinubu Pledges ₦1 Trillion to Boost Nigeria’s Mining Sector as Revenue Rises from ₦6bn to ₦38bn
By Joseph Iyaji | Akahi News
President Bola Ahmed Tinubu has approved a landmark allocation of ₦1 trillion to the solid minerals sector as part of his administration’s revised 2025 budget, signalling one of the boldest steps yet toward diversifying Nigeria’s economy beyond oil.
Government’s New Mining Vision
The ₦1 trillion allocation will focus on geological surveys, exploration, infrastructure development, and value addition in mineral processing. The goal, according to government officials, is to expand investment opportunities and ensure that Nigeria’s abundant mineral resources are fully harnessed for national development.
Authorities say the fund will help generate employment, boost exports, and support local industries dependent on raw materials such as lithium, gold, limestone, and iron ore.
This announcement comes as the Ministry of Solid Minerals reports a dramatic increase in sector revenue — from about ₦6 billion in 2023 to over ₦38 billion in 2024 — attributed to new reforms and the tightening of illegal mining activities nationwide.
Policy Reforms and Rising Revenue
The Tinubu administration has implemented several measures aimed at sanitising the sector, including:
- Licensing reforms to curb speculative and duplicate mining titles.
- Digital monitoring of mining operations to enhance transparency.
- Crackdown on illegal miners and improved collaboration with security agencies.
- Public–private partnerships for modern exploration projects.
Officials claim these reforms have already begun yielding tangible results, reflected in the sharp rise in revenue and increased investor interest from both local and international stakeholders.
Industry Reactions and Economic Prospects
Industry observers have welcomed the ₦1 trillion intervention as a potential turning point for Nigeria’s solid minerals sector. The Miners Association of Nigeria and several private investors described it as a “bold and strategic move” that could reposition mining as a major contributor to national GDP.
Economic analysts, however, caution that implementation remains key. They warn that without transparent project management, anti-corruption safeguards, and local content enforcement, the funds could fail to deliver long-term benefits.
They also stress the need for downstream processing industries — such as lithium battery plants, steel production, and gemstone polishing — to prevent raw material export without local value addition.
Akahi News Insight
While the ₦1 trillion allocation marks a bold vision for diversification, success will depend on three critical factors:
- Transparency: Full disclosure of project funding and progress to prevent leakages.
- Local Value Creation: Encouraging industries that convert raw minerals into finished products.
- Community Development: Ensuring host communities benefit through employment and social infrastructure.
If properly executed, the plan could transform mining into a leading revenue earner, rivaling agriculture and oil. But if the funds are mismanaged, the initiative may become another missed opportunity in Nigeria’s long history of resource-based reforms.
The Bigger Picture
Global demand for minerals like lithium, copper, and rare earths continues to rise, driven by the energy transition and electric vehicle production. Nigeria’s mineral wealth places it in a strategic position to benefit — provided the government sustains reform momentum and fosters investor confidence through stability and accountability.
The coming months will reveal whether this ₦1 trillion pledge represents a true economic turning point or merely another budgetary headline.
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