For decades, Nigeria’s solid minerals sector remained one of the country’s most underdeveloped economic frontiers despite its vast deposits of lithium, gold, tin, barite, rare earth elements and other strategic minerals. Successive administrations acknowledged its enormous potential, yet the sector contributed only marginally to national revenue while illegal mining, raw mineral exports and weak value addition limited its impact on economic growth.
Three years into the administration of President Bola Ahmed Tinubu, however, the sector is undergoing a significant transformation driven by a policy that prioritises local mineral processing over the export of raw materials. At the centre of that reform is the Minister of Solid Minerals Development, Dr. Dele Alake, whose appointment initially surprised many observers because of his background in media and public communication rather than mining.
Since assuming office, Alake has consistently argued that President Tinubu’s vision is to ensure Nigeria no longer exports its mineral wealth in raw form but instead develops local processing industries capable of creating jobs, transferring technology and accelerating industrialisation.
That policy is beginning to attract measurable investment. In recent months, the Federal Government has inaugurated and announced several lithium processing projects, including what it describes as West Africa’s largest lithium processing plant in Nasarawa State, with a daily processing capacity of 6,000 metric tonnes. The administration says the facility forms part of a broader strategy to move Nigeria higher up the global critical minerals value chain.
The minister has also disclosed that reforms in the sector are expected to unlock about $2.6 billion in mineral processing investments, including a $600 million lithium processing facility in Nasarawa State, a $200 million lithium processing plant near Abuja, and additional investments in mineral beneficiation and steel production.
Beyond attracting investment, the administration insists that value addition is now a central condition for mining development. Rather than permitting the routine export of raw minerals, the government is encouraging investors to establish processing facilities within Nigeria so that more of the economic value—jobs, technology, manufacturing capacity and tax revenues—remains in the country.
Economists have long argued that countries exporting raw materials capture only a fraction of the wealth generated from their natural resources, while nations that process and manufacture finished products retain substantially greater economic benefits. That lesson has shaped the industrial rise of countries such as China, Indonesia and several Gulf economies, where resource wealth became a platform for manufacturing, skills development and broader industrial growth.
President Tinubu has repeatedly emphasised that Nigeria must move beyond extraction to production, insisting that natural resources alone do not create prosperity unless they are transformed into industries, jobs and competitive exports. The commissioning of new lithium processing facilities reflects that philosophy and aligns with the administration’s broader economic diversification agenda.
Challenges nevertheless remain. Illegal mining, insecurity in some mining communities, inadequate geological data, environmental concerns and weak enforcement continue to affect parts of the sector. Sustaining investor confidence will require consistent regulation, transparent licensing, stronger environmental safeguards and continued investment in geological exploration.
Even so, the direction of policy marks a significant departure from the historical pattern of exporting raw minerals with limited domestic value addition. If successfully implemented over the coming years, the reforms could reposition solid minerals as one of Nigeria’s major non-oil growth sectors, creating employment, expanding government revenues and supporting the country’s long-term industrialisation ambitions.
The ultimate measure of success, however, will not be the number of investment announcements made, but the number of processing plants completed, jobs created, local industries established and sustainable economic opportunities generated for millions of Nigerians.
The National Patriots commends President Bola Ahmed Tinubu and the Minister of Solid Minerals Development, Dr. Dele Alake, for pursuing a bold vision to transform Nigeria from a mere exporter of raw minerals into a value-adding industrial economy. The growing investment in mineral processing plants, local beneficiation and job creation represents a strategic milestone in economic diversification. If sustained with transparency, security and effective regulation, these reforms could position the solid minerals sector as a major pillar of Nigeria’s industrial growth and long-term national prosperity.
Princess Gloria Adebajo-Fraser MFR
President, The National Patriots.
Special Adviser to Former President Goodluck Jonathan.
