Nigeria’s solid minerals sector generated ₦101.11 billion between January and September 2026, a 95.2 per cent increase from the ₦51.79 billion recorded in the corresponding period of 2025, according to data from the Ministry of Solid Minerals Development.

The nine-month revenue has already surpassed the ₦68.1 billion generated throughout the whole of 2025, signalling a stronger fiscal contribution from the mining sector as the Federal Government intensifies reforms aimed at boosting royalties and formalising the industry.

Mineral royalties contributed ₦66.12 billion, representing 65.4 per cent of total collections. Ministry fees accounted for ₦33.54 billion (33.2 per cent), while miscellaneous receipts contributed ₦1.45 billion.

The year-on-year increase amounted to ₦49.33 billion, reflecting improved collections from royalties, ministry fees and other receipts.

July recorded the highest collection at ₦29.13 billion, including ₦25.78 billion in royalties. However, revenue fell sharply to ₦8.47 billion in August before recovering slightly to ₦8.78 billion in September. The monthly fluctuations underscore the volatility of mineral revenue, which is sensitive to production cycles, commodity prices and enforcement activities.

Under the 2025 tax laws, the Nigeria Revenue Service assumed responsibility for collecting mineral royalties from January 1, 2026, while the Ministry of Solid Minerals Development retained its technical and regulatory oversight. The shift centralised royalty collection under the tax authority, a move officials say has improved compliance and transparency in revenue remittances.

The revenue growth comes amid increasing foreign investment in Nigeria’s mineral processing sector. Chinese investors have committed approximately $1.3 billion to the country’s lithium processing industry, according to the ministry. In Nasarawa State, Hasetins Commodities Limited is developing a rare-earth and critical metals processing plant in Uke, Karu Local Government Area, as part of efforts to deepen local value addition before export.

The 95.2 per cent increase in nine-month revenue is a positive signal for a sector that has historically contributed a small fraction of government earnings compared with oil.

The Federal Government has made solid minerals a pillar of its economic diversification agenda, targeting local processing, improved geological data and stronger enforcement against illegal mining.

However, the sector’s contribution to national revenue remains modest in absolute terms. The ₦101.11 billion generated in nine months is equivalent to a fraction of Nigeria’s monthly oil earnings, and the sharp drop in collections in August and September suggests that sustaining the growth trajectory will require not only higher royalty rates but also consistent production, effective oversight and continued investment in processing capacity.

The ministry has not indicated whether it expects full-year 2026 revenue to exceed the nine-month total, but the current pace — if maintained — would put the sector on course for its strongest revenue year in recent memory.