The Minister of Solid Minerals Development, Dr. Dele Alake, has announced an equity structure for the soon-to-be-established Nigeria Solid Minerals Corporation.
Speaking on Monday, he said, “We are looking at a 50% equity stake for the private sector, 25% for Nigerians, and 25% for the Federal Government.”
This initiative, approved by President Bola Tinubu, is part of a broader strategy to boost the mining sector’s contribution to Nigeria’s economy. The current sector contributes less than 1% to the nation’s GDP, a figure experts deem alarmingly low for a country with vast mineral wealth.
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Dr. Alake revealed that the Corporation will adopt the operational model of the Nigeria Liquefied Natural Gas (NLNG), ensuring financial transparency and shielding it from political interference. “The Solid Minerals Corporation will be an enduring legacy. No future government will be able to exert political control over it,” he said.
The Corporation will be spearheaded by the Ministry of Finance Incorporated (MOFI), with a focus on driving private-sector investment and boosting local participation. According to Alake, these efforts aim to create a globally competitive and sustainable mining industry.
Building Infrastructure for Mining
Improving access to mining sites remains a key focus. Dr. Alake highlighted plans to develop intermodal transport systems, including roads, railways, and waterways, along mining corridors. “Our government’s goal is to create a competitive mining sector that attracts global players while improving infrastructure and regulatory frameworks,” he stated.
He also outlined ongoing efforts to remediate abandoned mining pits, strengthen investor security, and expand exploration. The ministry’s geo-data initiatives aim to attract major players and spark investment in untapped resources.
Funding Challenges and Budget Advocacy
Despite the ambitious plans, inadequate funding remains a significant hurdle. The 2025 budget allocated just N9 billion for capital projects in the mining sector, a figure Dr. Alake criticised as “grossly unacceptable.” Addressing the National Assembly, he argued for an upward review, stating, “This allocation cannot unlock Nigeria’s mining potential or drive economic growth.”
In response, the National Assembly committee suspended further screening of the budget. They have summoned the Ministers of Budget and Finance to advocate for increased funding to match the sector’s transformative goals.
Nigeria’s mining industry has long been overshadowed by its energy sector. Although the country leads Africa in energy production, its mineral resources have been neglected, with challenges like illegal mining, inadequate incentives, and low investment stalling growth.
Dr. Alake remains optimistic, noting that 2025 will be a pivotal year for the sector. “We are already seeing positive trends in the economy. Our reforms will build a more sustainable and globally recognised mining industry,” he said.
