Nigeria has earmarked 1,000 billion naira (approximately $630 million) for mining exploration in 2025, in what the federal government describes as a bold step to revitalise the country’s underperforming mining sector. The announcement was made by the Minister of Solid Minerals, Dele Alake, via social media on Sunday, May 25.
The investment is part of a broader strategy to reposition Nigeria’s mining industry for growth and global competitiveness. The country is home to 44 different mineral types—including lithium, gold, and iron ore—yet mining contributes just around 1% to its GDP. Despite this, official figures estimate Nigeria’s mineral wealth at a staggering $700 billion.
“When this administration came on board, the sector was generating only six billion naira in 2023,” Alake stated. “But by the end of 2024, it had increased to 38 billion naira,” he said, citing it as evidence of ongoing reforms and progress.
A key focus of the 2025 allocation is exploration. According to Alake, prior to 2023, Nigeria had invested only $2 million in this critical area. “Without data, international stakeholders will ignore you,” he said, stressing the importance of comprehensive geological mapping and data quality to attract credible private investors.
The funds are expected to be channelled towards improving geological surveys and identifying viable mineral deposits—measures seen as essential for drawing investment into the sector.
This move also aligns with the Africa Mining Vision of the African Union, which underscores the necessity of national exploration capabilities for meaningful sectoral development.
However, despite the significant funding commitment, the federal government has yet to provide detailed information on how the funds will be mobilised or allocated. Specifics regarding target regions, project timelines, or priority minerals remain undisclosed.
As Nigeria positions itself to play a larger role in global mineral markets, stakeholders will be watching closely for clarity on implementation and measurable outcomes.
