By:Ecofinagency

Nigeria’s government has committed 1,000 billion naira (about $630 million) to support mining exploration activities in 2025, according to an announcement by Mines Minister Dele Alake via social media on Sunday, May 25. The move comes as part of a broader strategy to reposition the country’s mining sector for growth and global competitiveness.

Nigeria’s subsoil is known to contain 44 mineral types, including lithium, gold, and iron ore. However, despite this significant potential, mining contributes only about 1% to GDP, and the sector remains largely undeveloped. Official estimates place the value of Nigeria’s mineral resources at $700 billion.

Minister Alake noted that when the current administration assumed office, the solid minerals sector was underperforming, generating just six billion naira in 2023. By the end of 2024, that figure had increased to 38 billion naira, which he cited as evidence of policy progress. He emphasized the critical role of exploration, stating that prior to 2023, Nigeria had only invested $2 million in mining exploration.

The newly allocated funds aim to enhance geological data quality and map mineral deposits more effectively, both essential steps to attract serious private investors. Alake highlighted that without reliable data, international stakeholders tend to overlook mining opportunities.

This investment aligns with continental priorities set out by the African Union’s Africa Mining Vision, which underscores the importance of national exploration capacity for effective mining sector development.

Despite the funding announcement, details on fund mobilization, specific project targets, and mineral focus areas remain undisclosed. The government has yet to reveal which exploration campaigns will be prioritized or how the funds will be allocated across Nigeria’s mineral-rich regions.