Solid Minerals Revenue Soars from N6bn to N38bn, Says Alake 

Minister of Solid Minerals Development Dele Alake reports that his ministry has not only enhanced service delivery but has also increased solid mineral sector revenue from N6 billion to N38 billion annually.

He attributes this success to effective local value addition policies, which have attracted over $800 million in Direct Foreign Investment (DFI) to the sector.

Alake shared these achievements during a stakeholders meeting held during President Tinubu’s one-day working visit to Nasarawa State for project commissioning ceremonies led by Governor Abdullahi Sule.

“I met a total annual revenue in that sector of N6 billion. Given the president’s institutional support and back up for us in supporting our various initiatives and policy reforms, we have been able to grow this 6 billion to 38 billion in one year,” Alake said.

Since establishing the mines marshals program one year ago, more than 300 illegal mining operators have been apprehended.

“Currently, we are prosecuting over 150 of them, and we have secured over 15 convictions of both local and foreign illegal operators in the sector,” he reported.

With presidential support, the ministry announced a value addition policy requiring all miners to process raw materials locally before export.

“And this policy has generated a lot of salutary effects on the economy, such that the operators have been saying that we are serious,” he explained.

Under presidential directive pressure, operators are transitioning from extraction-only models to factory construction, implementing local value addition requirements. Nasarawa State has emerged as a leader in this transformation.

Regarding internally generated sector revenue, Alake noted that Nasarawa State has earned recognition as Nigeria’s solid mineral state.

“Currently, because of the positive effect of this local value addition policy, in Nasarawa State alone, we have attracted over $800 million in direct foreign investment into the sector,” he stated.

“And, Your Excellency, only three days ago, I sealed another historic deal of a $400 million rare earth minerals and critical metals plant, which is the largest in Africa, and to be cited in Nasarawa State.”

“Africa’s largest rare earth mineral is, however, going to generate, at completion, over 10,000 jobs. And so, we have asked them to put their separation centres in other geopolitical zones of the country, so that all parts of Nigeria will benefit from these landmark achievements.”

Alake emphasized continued ministry commitment to enhancing service delivery by protecting mining investments through mines marshal establishment, surveillance logistics support, and satellite monitoring projects approved by the President.

The ministry is reducing threats from illegal miners to legitimate operators by encouraging artisanal miners to form cooperatives and obtain proper mining permits.

Over the past two years, more than 250 artisanal mining cooperatives have been registered nationwide, becoming formalized, structured, and identifiable entities capable of attracting financial loans and monetary investment, thereby increasing sector revenue.

During the same period, over 2,000 licenses have been revoked for various violations including tax default, royalty payment failures, fee delinquency, dormancy, and license accumulation without utilization, which prevented genuine investors from entering the solid mineral sector.

License costs have been reduced to ensure only financially capable and focused business operators enter the sector. Licensing processes have been modernized through digitization and Decision Support System (DSS) implementation, making them more attractive to both domestic and international investors.

Addressing challenges faced during President Tinubu’s first two years, the Minister acknowledged: “There is no success without struggle. We have also confronted challenges, especially from pushbacks.”

“The mine marshals, because of their uncompromising stance against illegal mining operations, have been blackmailed. They have been subjected to all kinds of harassment.”

“And in spite of the whaling of the messiah, in spite of the deteriorations of the natural levels of negativism, in spite of those who are coupling together coalition to perdition, Mr. President has put his hands on the plough and there’s no looking back.”

Governor Abdullahi Sule of Nasarawa State thanked Minister Dele Alake for consistently collaborating with the President to attract processing industries to Nasarawa State.

He appealed to President Tinubu to expedite oil exploration activities in Obi Local Government Area.

“So far, in 2023, there is an exploration well that is going on in Obi Local Government Area of the state. There has been a discovery of hydrocarbons that has been in excess of one billion in that site,” he said.