Market News

A New Report has warned that without timely action, the growing allure of Nigeria’s mineral wealth could attract the same risks of conflict, environmental degradation and economic leakage observed across West Africa.

The Report published in ‘Volume 3, 2025 Mining Sector Mid-Year Report published on Mondaq Law Articles and Insights released on Tuesday, is however optimistic as the foundations for a more transparent, investor-friendly, and industrially integrated mining ecosystem.

It states that the 2nd half of 2025 will be decisive in testing the resilience of current reforms and the political will to actualise Nigeria’s vast mineral potential.

Adding that turning mining into a cornerstone of Nigeria’s economic diversification agenda will require consistent policy execution, deeper intergovernmental alignment and robust stakeholder engagement”

In its projections, the report notes that as Nigeria intensifies its solid minerals reform agenda, the sector is set to witness significant progress while recording achievements in the sector.

The report identified 327 arrests, including foreign nationals, notable convictions, eviction of over 3000 illegal miners from mining Lease 19425 in Kogi State, 28 clearance operations in high risks zones like Kuje (FCT), Umunneochi (Abia) and Ankpa, Kogi State as well as increase in deployment of officers from 2,220 to 2,670 within a year.

It states that “The second half of 2025 is projected to witness a wave of strategic implementation and deepened international cooperation that will accelerate investment, institutional capacity and economic diversification”.

To this end, the second half of 2025 will see the “operationalisation of the Nigeria Solid Minerals Corporation (NSMC), Strengthened Nigeria-Australia Partnership, Expansion of Saudi-Nigeria Mining Collaboration, Nigeria- South Africa Mining Agreement Implementation, Investor Mobilisation and International Road Shows, Advancement of Sustainable Mining Infrastructure”

Others include strengthened Legal Frameworks, Decentralised Oversight, and Capacity Building.

The Report recalled that following the close of 2024, when it reported bold steps towards sanitising and revitalising Nigeria’s mining sector, 2025 opened with even more determined activity.

“In our 2024 End of Year Report, we identified regulatory overhauls, strategic investments in lithium and gold and a renewed focus on host community engagement,” the Report stated

The Report listed key accomplishments of the sector from December 2024 to June 2025, to include the identification of 460 illegal mining sites nationwide, with 98-99 recovered and returned to legitimate title holders.

The Report further records other key activities to include strong revenue performance by the Mining Cadaster Office, recording an impressive revenue generation of N10.9 billion between January and April 2025 only

The Report, which takes its narrative from December 2024 to June 2025, reflects on a sector in transition, one that is striving to deliver on its long-promised potential through structural reforms, targeted funding, digital innovation and increased investor confidence.