Revenue accruing to the Federal Government from Nigeria’s solid minerals sector rose significantly in the first nine months of 2026, reaching N101.11bn, compared with N51.79bn recorded within the same period last year.
The 95.2 per cent growth represents an increase of N49.33bn, with higher payments from mineral royalties accounting for the largest share of collections.
Data from the Central Bank of Nigeria’s solid minerals revenue collection report showed that the sector recorded a particularly strong performance in June, generating N16.31bn against N4.75bn in June 2025, an increase of 243.7 per cent.
The revenue account, maintained by the CBN, receives payments from mineral royalties, fees charged by the Federal Ministry of Solid Minerals Development and miscellaneous sources, providing a record of government earnings from mining activities.
A breakdown of the January-to-September collections indicated that mineral royalties generated N66.12bn, representing 65.4 per cent of the total revenue.
The ministry's fees contributed N33.54bn, accounting for 33.2 per cent, while miscellaneous receipts amounted to N1.45bn.
The figures suggest that royalties paid by operators for minerals extracted and sold remain the principal driver of government revenue from the sector.
Monthly collections, however, showed considerable variations, with July emerging as the strongest month during the review period.
Revenue rose to N29.13bn in July, comprising N25.78bn from mineral royalties, N2.41bn in ministry fees and N938.29m from miscellaneous sources.
The performance represented a sharp increase from the N16.31bn recorded in June but was not sustained in the following month.
Collections plunged to N8.47bn in August, largely reflecting a significant drop in fees remitted to the ministry, which fell to N70.84m.
Royalties accounted for N8.04bn of the August revenue, while miscellaneous receipts contributed N362.19m.
The sector recorded a slight improvement in September, when total collections increased to N8.78bn.
During the month, mineral royalties generated N6.90bn, while ministry fees rose to N1.77bn. Miscellaneous revenue stood at N116.98m.
In June, royalties contributed N12.62bn of the N16.31bn collected, while ministry fees accounted for N3.66bn and miscellaneous receipts amounted to N32.12m.
The figures show that royalty payments accounted for about 77.4 per cent of June's revenue, reinforcing their dominant position in the sector's revenue structure.
The Minister of Solid Minerals Development, Dele Alake, has repeatedly linked the improvement in government earnings to ongoing reforms aimed at sanitising the mining industry.
The measures include stricter enforcement of mining regulations, reforms to the licensing framework and efforts to bring informal mining operators into the formal economy.
Nigeria generated N68.1bn from solid minerals in 2025, according to figures released by the ministry. Remittances from the sector into the Federation Account also stood at N63.92bn in the first 11 months of that year.
Speaking at the Africa Commodities Conference and Exhibition in Abuja in May 2026, Alake said the industry was beginning to demonstrate the impact of government policies through improved revenue performance.
He noted that although the figures remained below what could be expected from a country with Nigeria's vast mineral resources, the sector was making progress in revenue administration.
“Those are not yet the numbers of a mature mining giant, but they are the numbers of a sector that is gaining fiscal traction through reform, enforcement and better administration,” he said.
The Federal Government has intensified efforts to develop the solid minerals industry as part of its economic diversification strategy, particularly amid the need to broaden revenue sources beyond crude oil.
Despite the latest increase in collections, the substantial fluctuations in monthly receipts underscore the need for more consistent monitoring of mining operations, improved royalty compliance and stronger measures against illegal exploitation of mineral resources.
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