Nigeria Attracts $2.6 Billion in Mining Investments as Sector Revenue Climbs to ₦70 Billion
Mining Reforms Drive $2.6bn Investment into Nigeria, Says SMDF
Nigeria's solid minerals sector attracted $2.6 billion in investment commitments while government revenue from mining increased from about ₦16 billion in 2023 to over ₦70 billion in 2025, according to the Solid Minerals Development Fund (SMDF). The significant growth reflects ongoing reforms aimed at positioning mining as a major contributor to economic diversification and reducing Nigeria's dependence on oil revenue.
/ You Might Also Like /
The figures were disclosed by the Executive Secretary and Chief Executive Officer of the SMDF, Fatima Umaru Shinkafi, during the maiden Annual Lecture of the Faculty of Physical and Earth Sciences at the University of Lagos (UNILAG). She attributed the sector's improved performance to reforms introduced under the Federal Government's mining development agenda.
Mining Revenue Records Strong Growth
According to Shinkafi, revenue generated from Nigeria's solid minerals sector rose by approximately 337% within two years, increasing from about ₦16 billion in 2023 to more than ₦70 billion in 2025.
She also revealed that the sector recorded 33.5% real growth in 2025, underscoring the impact of regulatory reforms, improved investor confidence and increased exploration activities across the country.
$2.6 Billion Investment Commitments
The SMDF boss said Nigeria secured approximately $2.6 billion in fresh investment commitments, including a $1.3 billion alumina refinery, described as the largest single mining investment in the country's history.
She noted that these investments demonstrate growing international confidence in Nigeria's mining sector and support the government's efforts to diversify the economy beyond crude oil exports.
Unlocking Nigeria's Mineral Potential
Despite possessing more than 44 commercially viable minerals across over 500 locations, Shinkafi observed that the solid minerals sector currently contributes less than one per cent to Nigeria's Gross Domestic Product (GDP).
She said the Federal Government's reform agenda, led by the Minister of Solid Minerals Development, Dr. Dele Alake, is focused on improving regulation, attracting private investment and developing mining into a stronger pillar of economic growth.
SMDF Launches Research Funding Initiative
During the event, the SMDF unveiled the Early-Stage Mineral Exploration and Research Grant Endowment (EMERGE), described as Nigeria's first competitive research funding programme dedicated to geoscience and mineral exploration.
The initiative will support mineral exploration research, postgraduate studies and technical capacity development while strengthening collaboration between universities, government institutions and industry players. Shinkafi encouraged researchers to leverage the programme to generate innovations capable of driving the sector's long-term growth.
Economic and Infrastructure Implications
A stronger mining industry could have broader benefits for Nigeria's infrastructure and housing sectors. Increased domestic production of industrial minerals can improve the availability of construction materials, support manufacturing and attract investment into transport, energy and processing infrastructure required to sustain mining operations.
For investors, the latest figures suggest continued momentum in a sector increasingly viewed as a strategic pillar of Nigeria's economic diversification agenda.
Conclusion
Nigeria's mining sector is showing signs of significant transformation, with rising government revenue and growing investor interest reflecting the impact of recent reforms. While challenges remain, particularly in expanding the sector's contribution to GDP, continued investment, research and regulatory improvements could position solid minerals as a key driver of sustainable economic growth in the coming years.
READ MORE
