The Nigerian federal government has earned N16.4 billion from May 2023 to April 2024 through mining royalties and various fees. This was disclosed by Dr. Dele Alake, the Minister of Solid Minerals Development, during the Sectoral Updates Series in Abuja, marking the first anniversary of President Bola Ahmed Tinubu’s administration.
Dr. Alake highlighted that this revenue was collected by the Mining Cadastral Office (MCO), an agency under the ministry responsible for mineral title administration. The earnings surpassed the agency’s target of N10.5 billion by N6.7 billion.
Additionally, the minister reported that the Ministry of Solid Minerals Development generated N14,938,164,335.43 by December 31, 2023. This amount represents a 72.1% positive variance and a 172.1% performance compared to the annual budgetary target of N8,680,197,621.00 for 2023.
Dr. Alake also announced a collaboration between the ministry, through the Solid Minerals Development Fund (SMDF), and GeoScan Gmbh for exploring and developing Nigeria’s critical mineral resources using innovative technology. Furthermore, the ministry has partnered with the African Finance Corporation to establish a project development facility to support companies struggling to raise capital for early-stage exploration projects. At least 20 candidates have been shortlisted and are currently undergoing training to manage these funds effectively.
Another significant initiative of the SMDF is its partnership with the global exploration agency XCalibur to enhance Nigeria’s geological data capabilities. The SMDF is positioned as the ministry’s partner of choice for international mining companies, mobilizing capital for critical mining projects, attracting foreign direct investment, and expediting final investment decisions.
Dr. Alake also mentioned the ministry’s proposal for N70 billion in exploration funding, which, despite not being included in the current budget, remains a priority to address the challenges in mineral exploitation in Nigeria. He praised the Nigerian Geological Survey Agency (NGSA) for its diligent research efforts to uncover the mineral wealth of the Nigerian landscape, despite facing financial constraints.
