Nigeria's revenue from the solid minerals sector has increased by 95.2 per cent to N101.11bn between January and September 2026, up from N51.79bn recorded in the corresponding period last year. This growth is largely attributed to higher mineral royalty payments. According to the Central Bank of Nigeria's solid minerals revenue collection report, the government earned an additional N49.33bn from the sector within the nine-month period.
The growth in revenue was particularly pronounced in June, when revenue climbed to N16.31bn, representing a 243.7 per cent increase from the N4.75bn generated in the same month of 2025. The solid minerals revenue account, domiciled with the CBN, captures payments from mineral royalties, fees charged by the Federal Ministry of Solid Minerals Development, and other miscellaneous receipts.
A breakdown of the nine-month collections showed that mineral royalties remained the largest contributor, accounting for N66.12bn, or 65.4 per cent of total revenue. Fees collected by the Ministry of Solid Minerals Development stood at N33.54bn, representing 33.2 per cent, while miscellaneous receipts contributed N1.45bn. This indicates that royalties associated with mineral extraction and sales accounted for the bulk of government earnings.
Further analysis showed that July recorded the highest monthly revenue within the period, with total collections reaching N29.13bn. Mineral royalties accounted for N25.78bn of the July receipts, while ministry fees contributed N2.41bn. Miscellaneous collections stood at N938.29m. This suggests that increased activity and improved remittance enforcement may be contributing to the sector's revenue expansion.
However, the strong performance was followed by a significant decline in August, when total revenue fell to N8.47bn, before recovering marginally to N8.78bn in September. In August, mineral royalties generated N8.04bn, while miscellaneous receipts stood at N362.19m. Fees collected by the ministry dropped sharply to N70.84m. The September figures showed a different pattern, with ministry fees recovering to N1.77bn, while royalties contributed N6.90bn.
The Minister of Solid Minerals Development, Dele Alake, has consistently attributed the sector's improving performance to government efforts to strengthen regulatory enforcement, reform the licensing process, and formalise mining operations. Nigeria generated N68.1bn in total solid minerals revenue in 2025, according to figures presented by the ministry, while remittances into the Federation Account reached N63.92bn in the first 11 months of the year.
The sharp fluctuations in monthly receipts, particularly the surge in July and subsequent decline in August, highlight the uneven nature of revenue generation in the mining industry. The government's efforts to strengthen regulatory enforcement and formalise mining operations are expected to continue driving growth in the sector. The solid minerals sector is a key area of focus for the Nigerian government, with the potential to contribute significantly to the country's economic growth.
Key points
- Nigeria's solid minerals revenue surged 95.2% to N101.11bn in nine months, driven by higher mineral royalty payments.
- Mineral royalties accounted for 65.4% of total revenue, with fees collected by the Ministry of Solid Minerals Development contributing 33.2%.
- The government's efforts to strengthen regulatory enforcement and formalise mining operations are driving growth in the sector.
