How Nigeria Generated N16.3bn From Solid Minerals in 1 Year

By: Amadi Vincent Uzoma

The Minister of Solid Minerals Development, Dr. Dele Alake, announced on Thursday during the Sectoral Updates Series commemorating the first year of President Bola Tinubu’s administration in Abuja that the Mining Cadastral Office (MCO), a department under the ministry responsible for mineral title administration, has recorded earnings. According to Alake, the income exceeded the set target for the agency by N6,746,317,807.09 (N6.7bn), surpassing the N10,566,635,560.24 (N10.5bn) goal.

Furthermore, the Minister disclosed that the Ministry generated and collected N14,938,164,335.43 by the end of 2023, marking a positive variance of 72.1% and a performance level of 172.1% compared to the yearly budget target of N8,680,197,621.00 for the same year.

He mentioned that the Ministry, in collaboration with GeoScan Gmbh, utilized innovative technology for the exploration and development of critical mineral resources in Nigeria through the Solid Minerals Development Fund (SMDF).

Regarding funding, the Ministry reached an agreement with the African Finance Corporation (AFC) to provide a project development facility for companies struggling to secure capital for their early-stage exploration projects, with 20 selected candidates undergoing training.

Alake highlighted the partnership between SMDF and the global exploration agency XCalibur to enhance Nigeria’s geological data capabilities. He emphasized the role of SMDF in mobilizing capital for strategic mining projects, attracting foreign investment, and expediting final investment decisions.
While proposing a N70 billion exploration funding initiative for gathering comprehensive data, Alake acknowledged that it was not included in the current budget but assured continuous advocacy for the project to address challenges in mineral exploitation in Nigeria.

He also commended the Nigerian Geological Survey Agency (NGSA) for conducting rigorous research to understand the mineralogy of Nigeria despite financial constraints and the establishment of 2200 Mining Marshals to combat illegal mining activities.