SMDF Reports 337% Mining Revenue Growth

By Johnson Emmanuel

The Solid Minerals Development Fund (SMDF) has reported a 337 percent increase in federation revenue from Nigeria’s mining sector over two years, as the government pushes reforms aimed at expanding the sector’s contribution to the economy.

Executive Secretary and Chief Executive Officer of SMDF, Hajiya Fatima Umaru Shinkafi, disclosed the figures during the University of Lagos (UNILAG) Faculty of Physical and Earth Sciences Annual Lecture Series in Lagos. She said federation revenue from solid minerals rose from N16 billion in 2023 to N38 billion in 2024 and exceeded N70 billion in 2025.

The disclosure came as SMDF outlined plans to scale the mining sector towards a N30 trillion valuation and increase its contribution to gross domestic product (GDP) to three percent by 2030.

DECISION HIGHLIGHT

The revenue growth signals early results from regulatory reforms aimed at formalising mining activities, improving sector governance and attracting private capital into Nigeria’s mineral resources industry.

The government’s strategy combines investment mobilisation, enforcement against illegal mining and stronger links between academic research and commercial exploration.

DECISION MEMO 

Nigeria’s mining sector has historically remained below its economic potential despite significant mineral deposits. With more than 44 commercial minerals, including gold, lithium, iron ore and bitumen, spread across over 500 locations, the sector has contributed less than one percent of national GDP.

Shinkafi argued that recent revenue gains demonstrate the impact of improved governance rather than increased extraction alone.

“In 2023, this sector earned the Federation about N16 billion. In 2024, the figure rose to N38 billion. In 2025, it crossed N70 billion,” she said, noting that the growth came from “the same minerals and the same ground, governed differently.”

The sector recorded real growth of 33.5 percent in 2025, significantly above Nigeria’s overall economic growth rate of 3.9 per cent. However, the gap between resource potential and economic contribution remains substantial, particularly in mineral processing and export value addition.

The Federal Government is attempting to close this gap through the Seven-Point Agenda of the Ministry of Solid Minerals Development, led by Minister Dr Henry Dele Alake. According to Shinkafi, reforms have attracted $2.6 billion in new investment commitments, including a $1.3 billion alumina refinery project.

A key component of the strategy is reducing dependence on raw mineral exports by developing processing capacity. The introduction of EMERGE (Early-Stage Mineral Exploration and Research Grant Endowment) represents an attempt to strengthen the connection between universities, geological research and commercial mining.

The initiative provides funding support for postgraduate research in exploration, critical minerals and research development, creating a potential pipeline for locally generated mining knowledge.

However, achieving the N30 trillion sector target will require sustained investment, improved infrastructure, stronger geological data systems and effective enforcement against illegal mining activities.

DATA BOX

• Federation mining revenue:
  • 2023: N16 billion
  • 2024: N38 billion
  • 2025: Over N70 billion
• Revenue growth: 337% increase between 2023 and 2025
• Mining sector real growth (2025): 33.5%
• Nigeria GDP growth (2025): 3.9%
• Commercial minerals: Over 44
• Mineral locations: More than 500

Investment targets:

• Fresh investment commitments secured: $2.6 billion
• Alumina refinery commitment: $1.3 billion
• 2030 sector target: N30 trillion valuation
• GDP contribution target: 3%

Regulatory actions:

• Illegal miners arrested: Over 300
• Illegal mining sites recovered: Nearly 100
• Dormant mining titles revoked: Over 2,500

WHO WINS / WHO LOSES

Winners:
Mining companies, investors and research institutions stand to benefit from improved regulation, investment opportunities and stronger government support.

Universities and researchers gain new opportunities through EMERGE funding and industry collaboration.

Potentially affected:
Illegal mining operators and holders of inactive mining titles face increased regulatory pressure as enforcement measures expand.

POLICY SIGNALS

The reforms signal a shift from viewing solid minerals primarily as extraction activities towards building a structured industrial ecosystem around exploration, processing and value addition.

The government’s focus on critical minerals also aligns with global demand trends around renewable energy technologies and battery supply chains.

INVESTOR SIGNAL

The mining sector is emerging as a strategic investment area, supported by regulatory reforms, new investment commitments and government efforts to improve sector credibility.

For investors, Nigeria’s mineral potential offers significant opportunities, but investment decisions will depend on security, infrastructure availability, geological certainty and policy consistency.

RISK RADAR

Key risks include illegal mining, infrastructure limitations, regulatory enforcement challenges and delays in converting exploration activities into commercial production.

The success of Nigeria’s mining transformation will depend on whether current reforms can create a predictable environment that attracts long-term private investment and delivers value-added mineral production.