Nigeria rakes in ₦6.9bn from mining fees in Q1’25

Nigeria's mining sector has demonstrated promising signs with the generation of 6.9 billion naira in revenue from mining fees in the first quarter of 2025. The Minister of Solid Minerals Development, Dele Alake, announced this significant achievement, underlining the government's efforts to boost the sector's performance. One of the key initiatives in the pipeline is the establishment of the Nigerian Solid Minerals Corporation, aimed at propelling Nigeria onto the global mining stage. To delve deeper into this development, Cyril Azobu, Partner and Mining Leader at PricewaterhouseCoopers (PwC), shared insights in an interview with CNBC Africa. Cyril Azobu acknowledged the importance of the 6.9 billion naira revenue, emphasizing that it primarily stemmed from fees associated with licensing within the sector. He pointed out that while this figure is noteworthy, it does not fully reflect the sector's overall contribution to the economy. Comparing the quarterly average revenue to past years, he highlighted a positive trend indicating an upward trajectory in revenue generation. The increase in fees, coupled with the issuance of new licenses, has played a role in this growth. However, Azobu raised questions about the operational efficiency of these licenses and their potential to translate into tangible economic benefits. He stressed the need for a higher conversion rate of exploration efforts into significant financial gains to boost GDP. Azobu also discussed the significance of the Nigerian Solid Minerals Corporation in driving private sector investment in the mining industry. He appreciated the government's approach of involving the public through share issuance, fostering partnerships with major industry players. By leveraging lessons from the oil and gas sector, Azobu believes that the corporation can establish a robust framework for sustainable growth in mining activities. Looking ahead, he envisioned a future where Nigeria's mining sector becomes a vital revenue source, diversifying the economy away from oil dependency. When addressing challenges such as illegal mining, Azobu commended the government's efforts in deploying mining marshals and enhancing surveillance to combat illicit activities. Recognizing the security implications posed by illegal mining, he emphasized the need for heightened vigilance and technological investments to address these issues effectively. By curbing illegal mining activities, Azobu highlighted the potential for serious investors to engage in lawful and productive mining operations, contributing to the sector's growth. In conclusion, Cyril Azobu's insights shed light on the evolving landscape of Nigeria's mining sector, signaling a promising trajectory towards economic diversification and sustainable development. With strategic initiatives like the Nigerian Solid Minerals Corporation and enhanced efforts to combat illegal mining, Nigeria is poised to unlock the vast potential of its mineral resources, paving the way for a thriving mining industry.