President Bola Tinubu has approved the establishment of a Pre-Shipment Inspection Agency for Nigeria’s Solid Minerals sector.
It is aimed at plugging revenue leakages and enhancing transparency from extraction to export.
The Minister of Solid Minerals Development, Dr Dele Alake, announced this while addressing participants at the 10th Nigeria Mining Week in Abuja.
He explained that “the new agency would operate in a similar manner to that of the oil and gas sector, ensuring proper valuation of minerals and curbing sharp practices.”
“We identified loopholes in the value chain — from extraction to processing and exportation — where under-reporting and under-valuing of minerals were rampant,” Dr Alake said.
He said; “In some cases, exporters declared half the true value of what was shipped. To curb these shenanigans, President Tinubu has graciously approved a Pre-Shipment Inspection Agency for solid minerals. We’re working closely with the Ministry of Finance on its implementation.”
The Minister noted that the initiative followed months of meticulous policy work to eliminate systemic leakages in the sector.
Centralised Geological Data
Dr Alake also revealed that all geological data across ministries and agencies would now be consolidated under the Nigerian Geological Survey Agency (NGSA), which will serve as the official national repository for geological information.
He said; “Certified geological data are crucial for investors.
“Henceforth, all geological data from any ministry or department must be centralized in the NGSA…This will make exploration more efficient and credible.”
Dr Alake said that President Tinubu had also approved a major national exploration project to strengthen Nigeria’s geological database and boost investor confidence.
Funding Gaps
Addressing the funding challenges faced by local miners, Dr Alake announced the launch of the Solid Minerals Development Fund (SMDF) High Impact Mineral Exploration Programme. It is a grant-based funding scheme designed to support exploration activities across the country.
He said; “We realised that many local investors lack the financial muscle of foreign firms.
“This grant programme will cover up to 50% of eligible exploration costs and provide both financial and technical support for geochemistry and geophysics projects.”
Dr Alake added that the SMDF would soon release details on the funding pool, eligibility criteria, and expert selection committee.
The Fund would also support geoscience research and scholarships to build capacity and foster innovation in mineral economics.
Partnerships
To attract investment and ensure sustainable partnerships, Dr Alake announced the creation of the Nigerian Minerals Development Company (NMDC) — a private sector-driven entity that will serve as a joint venture platform between government and investors.
He said; “This company will replace the defunct Nigerian Mining Corporation,” he said. “It will be structured to operate efficiently and independently, free from undue political interference.”
Curbing Illegal Mining
On security, the Minister disclosed that the Mining Marshals — tasked with tackling illegal mining, had arrested over 300 illegal miners and recovered 98 mining sites from unauthorized operators across the country.
He said that Nigeria’s local value addition policy, which encourages domestic mineral processing, had gained traction across Africa and inspired the formation of the African Minerals Strategy Group, currently chaired by Nigeria.
He said; “Our policies are now being adopted across the continent.
“It shows that Nigeria is leading the conversation on sustainable mineral development and the global energy transition.”
Digitisation and Transparency
Highlighting ongoing reforms, Dr Alake noted that the Ministry of Solid Minerals had been recognised as Nigeria’s most digitized ministry by the Office of the Head of the Civil Service of the Federation.
He said; “You can now apply for mining licences and track approvals entirely online.
“This has reduced corruption, improved efficiency, and enhanced investor confidence.”
According to the Minister, the sector has attracted over $1 billion in foreign direct investment and increased revenue from ₦6 billion to ₦38 billion within one year, demonstrating the impact of ongoing reforms.
Dr Alake reaffirmed that President Tinubu’s administration is determined to make the solid minerals sector the new engine of Nigeria’s economic diversification and growth.
He said; “We have our hands on the plough, and there’s no looking back,” he said.“This sector will drive Nigeria’s economic future and position us as a major global player in the green energy transition.”
The Chairman of the Senate Committee on Solid Minerals Development, Senator Ekong Sampson, praised the progress recorded in the sector over the past decade, describing the 10th Nigeria Mining Week as a celebration of “impact, innovation, and collaboration.”
Sampson noted that the platform had become a catalyst for dialogue, reform, and investment, citing improvements in exploration funding, artisanal mining formalization, and technology adoption. He urged stakeholders to address persistent challenges such as insecurity, illegal mining, and funding gaps.
“Our goal is to create an environment where mining thrives, investments flourish, and communities prosper,” he said.
Also speaking, the National President of the Miners Association of Nigeria, Dele Ayanleke, commended the Mining Week for shaping policy and driving innovation in the solid minerals sector.
He said “the event had promoted investment linkages, capacity building, and sustainability, adding that it remains a vital platform for collaboration and sectoral growth despite its challenges.”
“Together, we can build a stronger, transparent, and globally competitive mining industry,” Ayanleke stated.
Victoria Ibanga