Southwest Emerges as Nigeria’s Mining Powerhouse, Contributing Over ₦7 Billion in Nine Months

The Minister of Solid Minerals Development, Dr. Dele Alake, has announced that Nigeria’s solid minerals sector generated over ₦30 billion in revenue between January and September 2025. Out of this figure, the Southwest region contributed ₦7.2 billion, making it the highest contributor to the nation’s mining income within the nine-month period.

Dr. Alake made the revelation during the Southwest Stakeholders Dialogue held in Akure, Ondo State, an event jointly organized by the Development Agenda for Western Nigeria (DAWN Commission), Afenifere, and Southwest governors. He described the record as a landmark achievement that reflects both investor confidence and the success of President Bola Tinubu’s Renewed Hope Agenda in revitalizing the mining sector.

According to the minister, the surge in revenue was largely due to comprehensive reforms, improved transparency, and strategic investor outreach campaigns. He noted that the Southwest is particularly well-positioned to benefit from Nigeria’s mineral wealth, citing the region’s vast deposits of gold, lithium, limestone, feldspar, granite, kaolin, beryllium, and gemstones.

Highlighting one of the region’s most successful ventures, Alake pointed to the Segilola Gold Project in Osun State, Nigeria’s largest and most advanced gold mining operation. The project, he revealed, declared a turnover of $193 million in 2024 and employs more than 2,000 people — with 80 percent of them under the age of 40. The mine has also become Nigeria’s leading taxpayer and royalty contributor in the gold subsector, strengthening the country’s footprint in the global minerals market.

Alake emphasized that the project’s success has attracted global attention, with the Segilola management team marketing Nigeria’s mining potential at major international investment forums. “The Southwest is leading by example,” he stated. “The region’s mining activities are not only creating wealth but also providing thousands of jobs and strengthening local economies.”

The minister disclosed that, as of mid-October, companies based in the Southwest hold 1,801 mineral titles, which include 630 exploration licenses, 51 mining leases, 284 quarry leases, and 836 small-scale mining licenses. Ondo State leads with 481 titles, followed by Oyo with 441 and Osun with 374. This concentration of mining titles, Alake explained, has led to the clustering of explosives manufacturing companies in the region, with firms such as Solar Niga Chem and Intrachem operating major facilities in Ogun State.

To further strengthen the mining ecosystem, the federal government has approved 46 private mineral-buying centers and registered 369 mining cooperatives, comprising over 5,000 members nationwide. The cooperative model, Alake said, is a critical “non-kinetic strategy” aimed at curbing illegal mining by providing legitimate avenues for artisanal miners to operate.

He further explained that new policies, including higher royalty and license fees, have encouraged mergers and acquisitions, reducing the number of dormant or speculative licenses. “Before the reforms, some individuals held as many as 35 mining titles without any activity. Now, we are seeing consolidation and professionalism in the sector,” he said.

Dr. Alake also revealed that revenue from the Mining Cadastral Office (MCO) has more than quadrupled in three years — from ₦6 billion in 2023 to ₦26.7 billion by October 2025. The increase, he said, was achieved through improved compliance monitoring, automation of licensing systems, and the elimination of redundant titles.

Security in mining areas has been another major focus of the ministry. Working with the Ministry of Interior, Alake said the government deployed Mining Marshals, a special unit of the Nigeria Security and Civil Defence Corps (NSCDC), to reclaim over 90 mining sites previously occupied by bandits. The Marshals have also arrested and are prosecuting more than 300 violators under the Nigerian Minerals and Mining Act.

He highlighted the Mines Satellite Monitoring Project, funded with an initial ₦2.5 billion, as a key innovation for real-time tracking of mineral movements and detection of illegal mining activities. The project, approved by the Federal Executive Council, uses advanced geospatial technology to monitor trucks, mine sites, and mineral exports nationwide.

Alake attributed the steady rise in mining revenue to the visionary leadership of President Bola Tinubu, saying that the administration’s Renewed Hope Agenda is translating into measurable economic gains. “President Tinubu has revived the spirit of enterprise and self-reliance envisioned by Chief MKO Abiola in his Farewell to Poverty manifesto. The Renewed Hope Agenda is about transforming our abundant resources into lasting prosperity for all Nigerians,” he declared.

Looking forward, the minister reaffirmed the government’s commitment to promoting value addition through local processing of minerals. He cited ongoing investments such as a $400 million rare-earth plant and multiple lithium processing facilities worth $1.7 billion in combined foreign direct investment.

Alake concluded by urging local leaders, traditional rulers, and community stakeholders to support government efforts against illegal mining and to ensure that investors sign legally binding Community Development Agreements (CDAs) before operations commence. He noted that 99 CDAs have already been signed across the Southwest, with nearly half finalized in the past year alone — a record in the ministry’s history.

In his words: “Our past may be written in stone, but our future will be written in gold.”