Dear Readers,
Just weeks after Minister of Solid Minerals Development Dele Alake announced significant discoveries of lithium deposits, alongside major platinum group metals, gold, nickel, copper, and rare earth elements in Kaduna State at the opening ceremony of the African Natural Resources and Energy Investment Summit 2026 held in Abuja, Nigeria’s solid minerals sector has hit another milestone: the inauguration of what is described as West Africa’s largest lithium processing plant, in Nasarawa State. The facility boasts a daily processing capacity of 6,000 metric tonnes and an annual capacity of three million metric tonnes.
Lithium, the lightest metal and a cornerstone of rechargeable batteries for electric vehicles (EVs) and renewable energy technologies, is in surging global demand as the world transitions to cleaner energy. Taken together, these developments position Nigeria not merely as a resource holder but as an emerging player in the global minerals supply chain.
This momentum reflects growing investment in the sector in recent years. At the same summit, the Minister also announced other major commitments including an $800 million lithium processing investment, a $600 million lithium processing factory investment in Nasarawa state, a $200 million lithium refinery near Abuja awaiting commissioning, and a $1 billion iron ore-to-steel initiative in Kogi. These sit alongside major investments announced the previous year, such as a $400 million rare earth and critical minerals processing facility in Nasarawa State, the Federal Government’s announcement of EV factories to be established by Chinese investors, agreements such as the MoU with Türkiye and growing commitments from indigenous companies like Romulus Mining. Together, they reflect renewed investor confidence driven by policy reforms.
Historically, Nigeria’s solid minerals sector was negligible, contributing less than 1% to GDP despite over 44 commercially viable minerals across more than 500 locations. Chronic challenges like underinvestment, weak regulation, illegal artisanal mining (dominating over 70% of activities), illicit financial flows, and a “pit-to-port” export model, limited value capture with revenue at just 0.72% of GDP in 2023. Today’s reality is evolving. Fiscal collections have risen sharply, reaching over N70 billion by the close of 2025, supported by regulatory tightening, title revocations of over 3000 dormant licenses, and formalization of over 250 artisanal cooperatives. Yet, systemic issues like fragmented oversight, criminal infiltration in areas like North-West states, and incomplete value chains mean that extraction still often outpaces processing.
At the heart of this transformation is Minister Dele Alake’s seven-point agenda, which aims to: establish the Nigerian Solid Minerals Corporation; gather nationwide geological data to de-risk investments; secure the mining environment via Mining Marshals; combat illegal mining through cooperatives and enforcement; market minerals to attract FDI; promote value addition and local processing; and empower communities through remediation and development agreements. This agenda is already driving significant reforms, including a modernized digital cadastre, mandatory local processing plans, ESG-focused social contracts, and initiatives like the SMDF, the EMERGE program and partnerships with Afreximbank for EV battery manufacturing. These efforts aim to unlock an estimated $750 billion in untapped resources and lift the sector’s GDP contribution toward 10%.
Weighing these developments, the progress appears tangible and commendable: revenue growth, high-profile inaugurations, and a policy pivot from raw export toward local industrialization all signal seriousness. The administration has moved beyond rhetoric, revoking thousands of speculative titles, prosecuting illegal operators, and attracting substantial capital. However, true reform demands more than announcements and processing plants; it requires sustained institutional coordination, robust enforcement against illicit flows, comprehensive geological mapping, and integration across the full value chain, from exploration to finished components. Nigeria’s history of policy inconsistency cautions against premature celebration.
We have these laudable discoveries, major investments, and a structured agenda. But are we genuinely on track for substantial, sustainable transformation in the mining sector, or do deeper structural barriers and cabals still risk limiting this potential to another missed opportunity?
One Response
Great content! Keep up the good work!