Nigeria’s earnings from the solid minerals sector increased by 95.2 per cent in the first nine months of 2026, driven largely by higher royalty payments from mining operators.
The country generated N101.11bn between January and September 2026, compared with N51.79bn recorded during the corresponding period in 2025, representing an additional N49.33bn in revenue.
The analysis of the Central Bank of Nigeria’s solid minerals revenue collection report showed that collections in June 2026 stood at N16.31bn, compared with N4.75bn in June 2025, indicating a 243.7 per cent year-on-year increase.
Revenue from the sector is domiciled in an account managed by the CBN, which receives payments from mineral royalties, regulatory fees and other miscellaneous sources.
The account serves as a platform for monitoring government earnings from mining operations and tracking financial remittances made by operators in the industry.
The significant increase in collections reflects improved revenue generation from the mining sector as the Federal Government intensifies efforts to diversify the economy and reduce its reliance on crude oil earnings.
A breakdown of the January to September figures showed that mineral royalties remained the largest contributor, generating N66.12bn, equivalent to 65.4 per cent of the total revenue.
Meanwhile, fees collected by the Federal Ministry of Solid Minerals Development amounted to N33.54bn, accounting for 33.2 per cent, while miscellaneous receipts contributed N1.45bn.
The figures indicate that royalties paid on minerals extracted and sold by operators accounted for the largest share of government earnings from the sector during the period.
In June, total collections of N16.31bn comprised N12.62bn in mineral royalties, N3.66bn in ministry fees and N32.12m from miscellaneous sources.
Royalties contributed approximately 77.4 per cent of the month’s revenue, further highlighting their importance to the sector’s earnings.
The report also showed that July recorded the highest monthly revenue within the period, with collections reaching N29.13bn.
Mineral royalties accounted for N25.78bn of the amount, while ministry fees generated N2.41bn and miscellaneous receipts contributed N938.29m.
However, revenue declined considerably in August, falling to N8.47bn before recording a slight recovery to N8.78bn in September.
During August, royalties generated N8.04bn, while ministry fees dropped to N70.84m. Miscellaneous collections stood at N362.19m.
The following month, fees increased to N1.77bn, while mineral royalties contributed N6.90bn and miscellaneous revenue amounted to N116.98m.
The figures highlight significant fluctuations in monthly collections, with July’s revenue exceeding three times the amount generated in August.
The Minister of Solid Minerals Development, Dele Alake, has consistently attributed the sector’s improving performance to government reforms aimed at strengthening regulatory enforcement, restructuring the licensing system and bringing informal mining operations into the formal economy.
Speaking recently, Alake said the government’s policies were beginning to produce measurable improvements in the industry.
He acknowledged that Nigeria’s mining sector was still developing but maintained that ongoing reforms were strengthening its contribution to government revenue.
“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 ministry’s figures showed that Nigeria generated N68.1bn in total solid minerals revenue in 2025, while remittances into the Federation Account reached N63.92bn in the first 11 months of that year.
