Nigeria has attracted over $2.6 billion in Foreign Direct Investment (FDI) into its solid minerals sector over the last 30 months, marking a significant shift in the nation’s economic diversification strategy.
The Minister of Solid Minerals Development, Dr. Dele Alake, disclosed the figures on Sunday during a high-level panel at the Powering Africa Summit in Washington, D.C. He attributed the capital inflow to aggressive reforms initiated under President Bola Tinubu’s administration, which he said have successfully "de-risked and sanitised" the mining environment.
According to Alake, the federal government has prioritised the formalisation of the sector through digitised licensing, strengthened governance, and improved regulatory frameworks. These measures have secured mineral tenure for international firms and enhanced the ease of doing business across the country’s vast mineral belts.
"Within the last two and a half years, we have successfully de-risked and sanitised the mining environment, making it conducive to Foreign Direct Investment," Alake stated in a release issued by his Special Assistant on Media, Segun Tomori. He added that the government now provides specific incentives, including tax waivers on imported equipment and full repatriation of profits.
Security remains a cornerstone of the new strategy. The Minister highlighted the impact of the 2,350-strong Mining Marshals, a specialised security unit that has arrested over 350 suspected illegal miners, including foreign nationals. Reports indicate that approximately 150 of these suspects are currently undergoing prosecution, while nearly 100 illegal sites have been recovered and stabilised.
Beyond security, the administration is enforcing a local value-addition policy. This mandate requires companies to process raw minerals within Nigeria before export, leading to the emergence of new lithium factories and a planned $400 million rare-earth metals plant.
Alake also used the summit to advocate for "Regional Energy Hubs" in Africa. He proposed utilising industrial corridors like the Lagos–Abidjan belt to drive cross-border manufacturing and secure the global supply chain for critical minerals essential to the green energy transition.