Nigeria's solid minerals sector presents a mixed picture, offering wealth, jobs, and economic opportunities in mineral-rich areas, while also contributing to insecurity, environmental degradation, and social disorder due to illegal mining activities. The sector has undergone significant reforms since 2023, focusing on modernisation, strengthened regulation and enforcement, and attracting investment. These efforts aim to shift the country from exporting raw minerals to local processing and value addition.
The reforms have shown positive results, with revenue from the solid minerals sector rising from about ₦16 billion in 2023 to ₦38 billion in 2024 and approximately ₦68.1 billion to over ₦70 billion in 2025. However, a recent tragedy in Niger State, where 37 young lives were lost, has been linked to illegal mining, official negligence, and unprofessionalism by some Civil Defense officers. This incident highlights the ongoing challenges in the sector.
Illegal mining is defined as the exploration, extraction, processing, or trading of mineral resources without the required licences, permits, or regulatory approvals, or in violation of the conditions governing such activities. Nigeria has a legal and regulatory framework for mining, primarily under the Nigerian Minerals and Mining Act, 2007, and subsequent legislation. The Nigeria Tax Act 2025, effective January 1, 2026, introduced changes affecting mining taxation and mineral royalties.
Not everyone found around a mining site is necessarily an illegal miner. Key questions to determine legitimacy include: Who holds the mining title? Is the operation properly licensed? Are miners operating within the approved area and conditions? Are required royalties, taxes, and fees being paid? And are environmental and safety requirements being observed? These factors help distinguish between legitimate and illegal mining activities.
Despite improvements in regulation, modernisation, and enforcement, illegal mining, insecurity, and environmental degradation remain interconnected challenges in Nigeria's solid minerals sector. The problem is not simply the absence of laws, as Nigeria already has extensive mining legislation and regulatory institutions. Rather, poverty, unemployment, weak enforcement capacity, informal economic activity, insecurity, and limited government presence in remote areas contribute to the persistence of illegal mining.
The challenge for Nigeria is not merely to stop illegal mining but to bring legitimate artisanal miners into the formal economy, enforce the law against criminal mining operations, protect host communities and the environment, improve security around mining areas, and ensure that Nigeria's mineral wealth translates into sustainable development. This requires a comprehensive approach addressing the root causes of illegal mining and promoting formalisation and regulation.
Nigeria is richly endowed with solid minerals, and the ultimate objective should be to ensure that the wealth beneath the ground becomes prosperity above the ground, legally, safely, and sustainably. Achieving this goal will require continued efforts to strengthen regulation, improve enforcement, and promote sustainable development in the solid minerals sector. The government, stakeholders, and communities must work together to address the challenges and harness the potential of Nigeria's mineral resources.
Key points
- Nigeria's solid minerals sector has seen significant reforms since 2023, resulting in increased revenue.
- Illegal mining activities have contributed to insecurity, environmental degradation, and social disorder in some communities.
- The challenge for Nigeria is to bring legitimate artisanal miners into the formal economy and ensure sustainable development.
