The Federal Government says Nigeria earned more than ₦30bn from licence fees, royalties and approvals in the solid minerals sector between January and September this year.
The South-West accounted for ₦7.2bn of that figure, the highest contribution by any region in the period under review.
Minister of Solid Minerals Development, Dr Dele Alake, disclosed this at the South-West Stakeholders’ Dialogue in Akure, saying recent reforms have boosted investor confidence and cleaned up longstanding inefficiencies in the industry.
He described the revenue performance as evidence that the sector is stabilising after years of weak regulation, illegal mining and insecurity in mineral-rich communities.
According to the minister, the South-West is currently the most active zone for quarrying and formal gold operations, supported by a wide network of licences, cooperatives and mineral-buying centres.
Alake pointed to the Segilola gold project in Osun State as the flagbearer of Nigeria’s move into formal, large-scale gold production.
He said the mine recorded a turnover of about $193m in 2024, employs more than 2,000 people, and pays some of the highest taxes and royalties in the gold subsector.
He added that about 80 per cent of the workforce at the Osun site are under 40, underscoring the sector’s potential to create decent jobs for young Nigerians.
The minister said the South-West is richly endowed with gold, lithium, limestone, granite, silica, feldspar, kaolin, laterite, quartz, manganese, beryllium, clay and a range of gemstones.
He noted that companies linked to the region hold roughly 1,801 mineral titles nationwide, including hundreds of exploration licences, mining leases, quarry leases and small-scale mining permits.
As at mid-October, he said, Ondo, Oyo and Osun ranked among the states with the most mineral titles, reflecting intense activity in quarrying and building materials.
Alake announced that the ministry has licensed 46 private mineral-buying centres and registered 369 mining cooperatives with over 5,000 members as part of efforts to formalise artisanal activity.
He explained that cooperatives are a non-kinetic tool to reduce illegal mining by giving small operators a legal route to sell, pay taxes and comply with environmental standards.
Beyond non-kinetic tools, the minister said security has improved with the creation of dedicated “Mining Marshals” within the Nigeria Security and Civil Defence Corps.
He stated that the unit has reclaimed more than 90 sites from illegal occupants and is prosecuting over 300 alleged offenders under the Minerals and Mining Act.
He linked the security gains to President Bola Tinubu’s decision to lift the ban on mining in Zamfara after five years, saying renewed order has encouraged legitimate companies to return to site.
Alake said the ministry is rolling out a mines satellite monitoring project, approved by the Federal Executive Council with a take-off fund of ₦2.5bn, to track licence coordinates, monitor truck movements and flag unlicensed haulage.
He stressed that technology-enabled monitoring will also help reconcile royalties and other statutory payments as minerals move from pits to processing points and end users.
The minister outlined revenue growth over the last three years as reforms took hold, saying mining-related collections were about ₦8.6bn in 2022, rose to ₦14.9bn in 2023, and hit roughly ₦38bn in 2024.
Between January and September this year alone, he said, receipts exceeded ₦30bn, with the South-West contributing ₦7.2bn.
He also cited higher collections by the Mining Cadastral Office, which manages licences, noting that receipts doubled from about ₦6bn in 2023 to around ₦12bn in 2024, and have reached roughly ₦26.7bn so far in 2025.
Alake said a review of fees and royalties forced consolidation in the industry by discouraging speculators who previously hoarded dozens of inactive licences while capitalised investors struggled to access permits.
He disclosed that 3,794 dormant or defaulting titles were revoked to free up assets for serious operators and to raise standards on environmental and social compliance.
On community relations, Alake reminded operators that they must sign Community Development Agreements before mining begins, committing to local projects and benefits.
He said 99 CDAs have been signed in the South-West to date, with 45 of those agreements concluded between September 2023 and now, suggesting faster enforcement of social obligations.
The minister urged traditional rulers and local leaders to set up community committees to engage companies on CDAs and to report illegal activities that undermine revenues and livelihoods.
He added that Osun has the highest number of registered mining cooperatives in the region, followed by Lagos and Oyo, as the ministry digitises cooperative records to improve traceability.
Looking beyond raw exports, Alake said Nigeria is pushing value addition to keep more jobs and income at home, a policy he is also championing across Africa.
He noted that African mining ministers have formed the Africa Minerals Strategy Group, with Nigeria elected as the pioneer chair, to coordinate positions on processing and beneficiation.
He listed new processing projects under Nigeria’s value-addition drive, including an expected groundbreaking for a $400m rare earth plant and lithium processing investments by Asba, Canmax and Avatar, with combined foreign commitments he put at about $1.7bn.
He argued that processing plants create multiplier effects across logistics, power, engineering services and training, and would help the country build a skilled workforce for the energy transition.
Alake said the Federal Government has also resuscitated a national mining company as a commercial vehicle to take minority stakes in “mega” projects, partner private investors and attract long-term capital.
Under the structure outlined, the company is expected to be run with private-sector discipline while allowing Nigerians to own shares when it is eventually listed.
He maintained that the Seven-Point Agenda of the ministry aligns with the administration’s broader economic plan and focuses on transparency, enforcement, local value, investment attraction, security, data, and community benefit.
For context, the minister acknowledged that the sector has struggled with banditry, illegal pits and revenue leakages in parts of the North-West and North-Central, which hurt investment and put communities at risk.
He said the joint actions of security agencies and the Mining Marshals, backed by better licensing and monitoring, are beginning to restore confidence among miners and financiers.
He urged stakeholders to sustain the gains by reporting illegal operations and supporting cooperatives so that more activities move from the shadows into the formal economy.
Alake said recent data from government statistical bodies show the sector’s output is improving, with its share of GDP ticking up and real growth quickening compared to 2023.
He argued that these early signs, together with rising collections and new processing commitments, suggest that solid minerals can become Nigeria’s next big revenue source outside oil.
The minister appealed to South-West leaders to continue backing reforms and to help ensure that communities benefit fairly while investors operate under clear rules.
He added that the region’s strong base in quarrying, building materials and emerging battery minerals gives it an edge as Nigeria pursues infrastructure growth and the global transition to clean energy.
He said the goal is simple: grow lawful mining, add value locally, create jobs for young people and use the sector to lift government revenues without over-burdening taxpayers.
Alake concluded that Nigeria’s mining story is changing from scattered illegal activity to organised, technology-tracked production that can support national development for years to come.
