Mining, Insights, Energy and Resources Practice Group

2026 Mid-Year Nigeria Mining Sector Report

Nigeria’s solid minerals sector enters the second half of 2026 at a defining juncture. The 2016 Mining Roadmap has concluded its ten-year mandate, sector revenues have grown more than fivefold in three years, and domestic mineral processing capacity is beginning to emerge at scale. Yet the gap between policy ambition and industrial execution remains the sector’s defining challenge. This report provides a data-driven assessment of developments between December 2025 and June 2026, updating key issues tracked in the 2025 End-of-Year Report and positioning Nigeria’s performance within a global context. Headline indicators remain encouraging as N15.62 billion was remitted to the Federation Account in Q1 2026 alone. The commissioning of a high-purity gold refinery in Lagos and the near-commissioning of the USD600 million lithium processing plant in Nasarawa State provide tangible evidence of the Federal Government’s value-addition policy.

 

Significant structural constraints nevertheless remain. The Nigeria Tax Act 2025 has increased royalty rates and transferred royalty collection to the Nigeria Revenue Service, fundamentally reshaping the fiscal landscape. Few incentives exist for smaller operators, while key mining reform bills, including the Nigeria Mines Rangers Service Bill, have yet to become law. Meanwhile, the Nigerian Solid Minerals Company has progressed from establishment to active market engagement, but its first commercial joint venture is still expected. Illegal mining, estimated to cost Nigeria about US$9 billion annually, continues despite intensified enforcement efforts. The second half of 2026 will ultimately be judged not by new policy announcements but by implementation. With a N1 trillion budget allocation, Nigeria must now convert policy into infrastructure, legislation, commercial projects, and capable institutions.

To read the full article, kindly download the PDF

Aderemi Ogunbanjo

Partner

Sandra Osinachi-Nwandem

Senior Associate

Olawunmi Abiola

Senior Associate

Eyitayo Ajisafe

Associate

Oheji Emmanuel Iji

Associate

Enoch Akinlabi

Associate

Practice Key Contacts

More To Read

05/10/2026
Deep Offshore Oil And Gas Projects Incentives (Tax Remission) Order, 2026: Nigeria Expands Fiscal Support For Deep Offshore Developments

Introduction On 6 August 2026, the President of the Federal Republic of Nigeria signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order,

02/10/2026
The Human and Regulatory Cost of Illegal Mining: Re-evaluating Nigeria’s Artisanal Mining Framework

Dear Readers, Nigeria’s solid minerals sector has in the last few years bolstered its efforts to establish itself as more than a footnote to oil.