“Mining Sector Is Gaining Fiscal Traction Through Reform” — Alake As Nigeria’s Solid Minerals Revenue Rises To ₦101.11bn

Nigeria’s revenue from the solid minerals sector rose by 95.2 per cent to ₦101.11 billion between January and September 2026, compared with ₦51.79 billion recorded during the corresponding period of 2025, as increased mineral royalty payments boosted government earnings from mining activities.

The development was revealed in the Central Bank of Nigeria’s (CBN) solid minerals revenue collection report, which showed that government receipts from the sector increased by approximately ₦49.32 billion within one year.

The figures indicate improved revenue collection from mining operations amid ongoing efforts by the Federal Government to diversify the Nigerian economy and reduce its dependence on crude oil.

According to the CBN report, revenues generated from solid minerals are deposited into an account domiciled with the apex bank, where collections from mineral royalties, fees paid to the Federal Ministry of Solid Minerals Development and other miscellaneous receipts are recorded.

The arrangement provides a mechanism for monitoring government earnings from mining operations and tracking financial remittances by operators in the sector.

An analysis of the figures showed that mineral royalties accounted for the largest portion of the revenue generated during the nine-month period, contributing ₦66.12 billion, representing approximately 65.4 per cent of the total collections.

Fees collected by the Federal Ministry of Solid Minerals Development amounted to ₦33.54 billion, accounting for 33.2 per cent, while miscellaneous receipts contributed ₦1.45 billion.

The breakdown indicates that royalties paid on extracted and sold mineral resources remained the dominant source of government revenue from the sector, ahead of administrative and other fees collected from mining operators.

The report further revealed that revenue collections recorded a sharp increase in June 2026, rising to ₦16.31 billion from ₦4.75 billion in June 2025.

This represented a year-on-year increase of approximately 243.7 per cent, meaning that revenue generated during the month more than tripled compared with the corresponding period of the previous year.

Of the ₦16.31 billion collected in June, mineral royalties accounted for ₦12.62 billion, while ministry fees contributed ₦3.66 billion.

Miscellaneous revenue amounted to ₦32.12 million.

Royalty payments alone represented approximately 77.4 per cent of the month’s collections, reflecting the growing contribution of payments associated with mineral extraction and sales.

The upward trend continued into July, when the sector recorded its highest monthly revenue during the nine-month period.

According to the CBN figures, total collections increased to ₦29.13 billion in July 2026, driven largely by mineral royalty payments.

Of that amount, royalties contributed ₦25.78 billion, while fees collected by the ministry stood at ₦2.41 billion.

Miscellaneous receipts accounted for ₦938.29 million.

However, the improvement was not sustained in the subsequent month, as collections declined sharply to ₦8.47 billion in August.

The decline was particularly pronounced in fees collected by the Federal Ministry of Solid Minerals Development, which fell to ₦70.84 million.

Mineral royalties contributed ₦8.04 billion during August, while miscellaneous revenue stood at ₦362.19 million.

Although royalty payments remained the largest source of revenue, the sharp fall in total collections underscored the fluctuations affecting government receipts from the mining industry.

In September, collections recovered marginally to approximately ₦8.78 billion.

The ministry recorded ₦1.77 billion in fees during the month, while royalties contributed ₦6.90 billion.

Miscellaneous revenue amounted to ₦116.98 million.

The figures showed that July’s revenue of ₦29.13 billion was more than three times the amount collected in August, highlighting the uneven monthly performance of the solid minerals sector despite the overall increase in receipts.

The Minister of Solid Minerals Development, Dele Alake, has consistently defended the Federal Government’s reforms in the mining industry, maintaining that stronger enforcement, improvements in licensing procedures and the formalisation of mining activities are yielding positive results.

The minister has argued that efforts to strengthen regulatory oversight, improve compliance among operators and enhance the collection of royalties are helping to increase government earnings from the sector.

According to figures previously presented by the ministry, Nigeria generated ₦68.1 billion in total solid minerals revenue in 2025.

The ministry also disclosed that remittances into the Federation Account reached ₦63.92 billion during the first 11 months of that year.

Speaking at the Africa Commodities Conference and Exhibition held in Abuja in May 2026, Alake acknowledged that the mining sector had yet to attain its full potential but maintained that the government’s reforms were beginning to produce measurable fiscal improvements.

“Those are not yet the numbers of a mature mining giant, but they are the numbers of a sector that is gaining fiscal traction through reform, enforcement and better administration,” the minister stated.

The latest CBN figures suggest that government revenue from solid minerals in the first nine months of 2026 has already exceeded the ₦68.1 billion recorded for the whole of 2025.

The increase reflects higher reported collections, particularly from mineral royalties, although the considerable fluctuations between June and September indicate that revenue performance remains uneven.

The development comes as the Federal Government continues to pursue reforms aimed at strengthening the mining industry’s contribution to national revenue and improving the administration of Nigeria’s mineral resources.

With mineral royalties accounting for nearly two-thirds of total collections, the figures also highlight the importance of effective monitoring of extraction activities, regulatory compliance and accurate remittance of payments by mining operators.

The CBN report provides evidence of rising government receipts from the sector, although the sustained impact of the reforms will depend on whether the revenue improvements can be maintained over subsequent reporting periods.

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