By SUNDAY ABBA, Abuja
The Federal Government of Nigeria (FGN) has disclosed that the country’s mining sector secured over 800 million US dollars (US$800m) in 2024.
The disclosure was made at the opening ceremony of the 4th African Natural Resources and Energy Investment Summit (AFNIS) holding at the Banquet Hall of the Presidential Villa on Wednesday in Abuja by the Minister of Solid Minerals Development and Chief Host, Dr Dele Alake, who equally represented President Bola Ahmed Tinubu.
The theme of this year’s summit, which is the fourth edition, is “Harnessing Local Content for Sustainable Development”.
Dr Alake attributed the breakthroughs being recorded in the sector in recent times to the “sweeping reforms” being implemented courtesy of the Renewed Hope Agenda of Mr President to formalise mining and boost domestic value addition.
He said, “In 2023, the Ministry of Solid Minerals launched a seven‑point agenda focused on formalisation and value addition in mining. New policies now require every mining license to include a plan for local processing, and we have increased enforcement.
“These changes have spurred a surge of investment and revenue. Last year (2024), Nigeria’s mining sector secured over $800 million in investments for processing projects, while government revenues increased significantly.
“Specifically, sector revenues rose from ₦6 billion (2023) to ₦38 billion in 2024.
“This six-fold jump reflects tight licensing, a crackdown on illegal mining, and a policy that promotes mineral processing in line with value addition.”
According to him, licensing had expanded sharply under the reforms, such that in Q1 2025 alone, the Mining Cadastre Office (MCO) processed 955 title applications and approved 867 new mining licenses (512 exploration titles, 295 small‑scale leases, 60 quarry leases, five large mining leases).
“These licensing fees generated ₦6.95 billion for the government in just three months. The aggressive licensing drive (over 10,000 applications in one quarter), combined with higher costs and compliance checks, is a key reason for the revenue increase,” he said.
The Minister stated that government had commissioned Nigeria’s first domestic lithium processing plants.
“We inaugurated a $100 million lithium battery plant (Avatar Energy) in Nasarawa in May 2024, with a daily capacity of 4,000 tons, expected to create 4,000 jobs. More plants are coming online: a $600 million lithium plant near the Kaduna‑Niger border (to be commissioned shortly) and a $200 million refinery on Abuja’s outskirts are at advanced stages,” he said.
He affirmed that by law, no new mining license is issued without a local processing plan, ensuring that these investments retain value in-country.
Speaking further, Alake said, “To leverage its lithium and other minerals, Nigeria is fostering the battery and EV industries. NASENI and the Rural Electrification Agency signed a $150 million deal in 2023 to build a lithium‑ion battery manufacturing and processing factory. This initiative, part of the COP28 climate partnership, will produce batteries domestically and “contribute to job creation, economic growth, and the extractive industry” in Nigeria.
“Likewise, plans are underway to establish electric vehicle assembly plants in Nigeria. As I once stated, with abundant lithium, the goal is to see “local manufacturing of electric vehicles and batteries”. These steps anchor Nigeria deeper in the EV/battery supply chain and create high-skill jobs locally.
“To cap it all, we recently announced plans to build the largest rare earth and critical minerals production facility in Nigeria, at a whopping sum of $400 million, by Hasetins.
“We are confident that this project will meet its construction target, as the company already has installed capacity for 6,000 metric tonnes and is adding capacity to produce an additional 12,000 metric tonnes.
“All of these reforms are explicitly aimed at jobs and local value.”
Alake who is chairman, African Minerals Strategy Group (AMSG), an intergovernmental body, made up of African Ministers of Minerals and Mining, established January 2024 to foster cooperation among African nations in the minerals and mining sector towards ensuring that Africa plays a central role in the global energy transition by promoting local beneficiation, transparent supply chains, and sustainable development of the continent’s mineral wealth, said the paradigm shift must be replicated across Africa.
“To achieve this, we require African capital and ownership. That is why we have established the Solid Minerals Development Fund to support small-scale miners, build critical infrastructure, and mitigate investment risk in exploration and processing.
“That is why we are establishing the Nigerian Solid Minerals Company as a special purpose vehicle to attract the big global players into our solid minerals sector. And that is why you and I are attending AFNIS now to create a sustainable and profitable future for our natural resources.
“The launch of the Africans for Africa Fund under AFNIS further reinforces this agenda. We want to see our pension funds, banks, and sovereign funds investing in our extractive future. When Africans own the value chain, the benefits multiply.”
According to him, what is needed is
partnerships that are fair, transparent, and founded on mutual respect.
“This means joint ventures where African companies and communities have real equity. It means insisting on local content policies that foster skills development and supply chain growth. It means securing fair financing so we are not burdened with unsustainable debt, but instead empowered to co-create prosperity,” he explained.
In his goodwill address, Minister of power, Chief Adebayo Adelabu, stated that as global trends shift towards decentralisation, digitisation, and decarbonisation, Nigeria is working to ensure local content does not remain a policy slogan but becomes a measurable lever for economic growth, industrial capacity, and energy security.
According to him, “With a population exceeding 200 million, Nigeria’s electricity demand continues to rise. Meeting that demand requires more than generation. It requires a clear regulatory framework, sustained investment, and local participation at every value chain level, from metering and manufacturing to system operations and grid management”.
Delivering his goodwill messages, Kenyan Minister of Mining, Blue Economy, and Maritime Affairs, Hassan Ali Joho,expressed gratitude to the organisers for convening stakeholders, saying the conversation was timely.
According to him, “It is clear we’re endowed with huge, valuable or geological, valuable resources that can transform our lives, ensure we position ourselves as a continent, but there are certain critical decisions that we must undertake, and it is only at summits like this where we are able to make solid and meaningful decisions”.
About six African Ministers attended the 2-day summit.
In his welcome address earlier, the Permanent Secretary, Ministry of Solid Minerals Development, Engr Faruk Yusuf Yabo, highlighted the essence of the summit, describing it as a platform for African countries to forge a united front in attracting green investments, developing clean energy infrastructure, and repositioning the continent as a key player in the global energy transition.
Various stakeholders delivered goodwill messages, in person or by proxy, declaring their support for the continental mining agenda, including the governors of Nasarawa and Benue States, as well as the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB) Felix Omatsola Ogbe among others.