Nigeria, a nation richly endowed with mineral resources, is intensifying efforts to transform its underexploited mining sector into a key pillar of economic growth. Despite the presence of vast deposits of gold, lead, zinc, limestone, coal, and gemstones, the sector has long remained dormant contributing far below its potential to national development.

To change this narrative, the federal government has implemented a new National Policy on Solid Minerals, aimed at fostering sustainable and orderly development of the sector. The policy seeks to enhance transparency, attract investment, and create value across the entire mining value chain.

Each of Nigeria’s 37 states boasts significant mineral reserves. From industrial minerals such as kaolin, gypsum, and bentonite, to metallic ores like iron and tin, the country’s geological diversity positions it as a potential global mining hub. Notable estimates include over 40 million tonnes of talc, one billion tonnes of gypsum, 42 billion tonnes of bitumen, and nearly three billion tonnes of coal resources that can help Nigeria meet domestic demand, diversify exports, and reduce dependence on imported raw materials.

In a decisive move to reposition the industry, the federal government has ramped up private sector engagement, particularly in the development of gold and lead/zinc resources. Speaking at the 2025 BusinessDay Mining Conference, Minister of Solid Minerals Development, Dele Alake, unveiled a groundbreaking $1.3 billion investment project backed by the African Finance Corporation and the Solid Minerals Development Fund. Touted as one of the largest private-sector-driven mining investments in Nigeria’s history, the project is expected to inject $1.2 billion annually into GDP and generate $8 billion in foreign exchange earnings over its lifecycle.

This optimism is echoed in the recent performance of the Mining Cadastral Office, which recorded 955 mining title applications and approved 867 in the first quarter of 2025 alone.

The influx of applications spanning exploration and small-scale mining reflects growing investor confidence in the government’s reform agenda and regulatory clarity.

Complementing these policy efforts are major investments in mineral processing infrastructure. In 2024, over $800 million was committed to projects aimed at boosting local value addition.

Among the most significant are a $600 million lithium processing plant near the Kaduna Niger border and a $200 million lithium refinery near Abuja, both slated for commissioning in mid-2025. These projects are expected to bolster domestic capacity for refining strategic minerals and support the electric vehicle and battery industries.

Regional cooperation is also playing a role in deepening Nigeria’s mining capacity. In April 2025, Nigeria signed a bilateral mining agreement with South Africa, covering technical collaboration in areas such as drone-based geological mapping, data sharing, and joint exploration initiatives focused on high-value minerals like gold, iron ore, and zinc.

Although there have been no specific ministerial declarations in 2025 calling for investors to stake direct concessions on primary gold deposits, the wider momentum speaks for itself. From policy reforms and streamlined licensing to massive private capital inflows and strategic partnerships, Nigeria is making a strong case as one of Africa’s most attractive mining destinations.

With sustained government backing, improved infrastructure, and increased investor participation, Nigeria’s solid minerals sector is poised for a long-awaited transformation. As global demand for strategic resources continues to rise, Nigeria is finally positioning itself not just as a source of raw minerals—but as a value-driven player in the global mining economy.