Nigeria’s vast reserves of gold, lithium, limestone, and coal have long promised economic transformation, yet the mining sector remains underutilised. Between 2019 and 2023, the sector contributed below 1% to Nigeria’s GDP. However, in 2025, the sector’s GDP contribution climbed to 1.8%, with a 4.61% growth rate in Q2 alone. This growth was driven by increased investor participation and a surge in local processing, as well as meeting a more aggressive regulatory environment.

In 2026, the Ministry of Solid Minerals Development is strengthening sector oversight through the deployment of nationwide satellite surveillance and an expanded force of mining marshals to curb illegal operations. With the newly established Minerals Pre-Shipment Agency now tightening export controls, mining seems ready to change its fortune. Yet, as the industry accelerates, the core question for 2026 remains: can these structural reforms withstand the persistent headwinds of insecurity and infrastructure gaps, or will the sector remain constrained by historical risks?

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Nigeria’s Mining Sector: History and Current Performance

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Mining in Nigeria dates back to the 1900s, beginning with the discovery of coal in Enugu in 1909. In the 1960s, Nigeria was a major exporter of tin, columbite, and coal. However, the discovery of crude oil triggered a shift in priorities, with the mining sector sidelined in favour of petroleum exports. Despite the 2007 Nigerian Minerals and Mining Act (2007) and other efforts from the federal government, the sector’s recovery remained stunted until recently.

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2024 was a mixed bag for the sector. The total mined quantity for the year surged to over 660,000 tonnes from 14990 tonnes in 2023, but the sector’s contribution to the GDP dropped to just 0.15% in the third quarter. The sector also recorded a growth rate of 4.85% in 2024, a significant increase from 2.84% in 2023. The sector’s mixed performance underscores a critical gap between raw extraction and actual value retention.

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By the end of 2025, the sector surpassed the 1% ceiling, contributing 1.8% of GDP. This was fueled by the Nigeria Solid Minerals Company (NSMC)’s operations and the launch of the Energy Transition and Critical Materials (ETCM) Roadmap. This new framework succeeds the 2016 Roadmap, aligning Nigeria with the global demand for green minerals. As we enter 2026, the momentum is clear, but the pace of diversification is slow.

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Opportunities For Nigeria’s Mining Sector in 2026

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The Veriv Africa Macroeconomic Outlook 2026 identifies timely opportunities for the Nigerian non-oil sector, particularly Nigeria’s lithium mining industry. Driven by the global surge in electric vehicle production, demand for green metals has increased globally, creating opportunities for Nigeria’s lithium industry. Globally, the lithium market is projected to hit over $74 billion by 2030, growing by 18%. This shift is visible, following the commissioning of the $600 million lithium refinery in Nasarawa in 2025. Investors can engage in lithium beneficiation and the acquisition of exploration licenses. However, risks to the industry remain. Insecurity remains a persistent hurdle in the mining areas of the country. Additionally, managing environmental impact remains critical. Despite these bottlenecks, the sector presents promising prospects for investors in 2026.

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Risks To Nigeria’s Mining Sector

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Despite its potential, Nigeria’s mining sector still faces structural hurdles. Data gaps in the sector regarding mineral quantity, availability, and location have deterred major investors. Security and the lack of financing also remain frontline challenges. Illegal mining continues to stunt growth in the sector, undermining operations in the industry. The enforcement of environmental laws to shield host communities from environmental degradation is also very low. These headwinds stunt the progress of the sector and must be addressed to ensure growth. Although mining is currently undergoing reform changes, the Ministry of Solid Minerals Development and the Federal Government need to strengthen implementation to ensure these risks are mitigated.

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How Does the Sector’s Operations Affect Nigerians in 2026?

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For decades, oil dependence has been the leading influence on the Nigerian economy and its greatest volatility. By putting most of its eggs in the petroleum basket, Nigeria allowed external shocks in the global market to determine its domestic future. However, the tide is gradually turning, with the Nigerian non-oil sector emerging as a stabiliser. The Nigeria Revenue Service (NRS) reported a revenue generation of ₦28.29 trillion in tax receipts in 2025, with the non-oil sector as the key driver, and this is projected to continue in 2026. Within this impressive shift, the mining sector stands out as a diversification tool, supported by landmark reforms and billion-dollar international partnerships. If this holds, mining will contribute significantly to revenue generation, offering a shield against the volatile external shocks caused by the global oil market. The question then becomes: how does this shift affect the lives of average Nigerians?

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Uche is a veteran entrepreneur who has spent a decade building a resilient network of buyers and suppliers. Whenever global oil prices shift or any external shock occurs, Nigeria’s volatile exchange rate sends Uche’s import costs into an unpredictable spiral, turning his gains into losses. However, as 2026 progresses, Uche is witnessing a shift. Nigeria’s diversification efforts, spearheaded by a resurgent mining sector, are finally acting as an economic shield. The improved influx of non-oil wealth is helping to anchor the exchange rate. Uche can now project his costs months in advance, allowing him to retain customers with stable pricing and finally expand his warehousing. As inflation continues its downward trend, Uche’s standard of living climbs. His story is a blueprint for millions of Nigerians. As the mining sector improves, providing stability in the economy, Nigerians will experience a stable, prosperous future.

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Conclusion

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Nigeria is finally unlocking the potential of its mining sector, moving it from the fringes to the frontline of economic action. The journey from the 1909 coal mines to the record-breaking growth of 2025 reflects the sector’s expanding trajectory. By dismantling the structural hurdles that stunted growth in the sector, the government can reduce illegal mining activities and close the data gaps. The victory of the sector’s transformation goes beyond GDP percentages; it translates directly to the lives of Nigerians like Uche. As a resurgent mining sector provides a backbone for the naira and improved revenue generation, Nigeria’s goal of diversification is finally becoming an economic reality. As we move through 2026, the question is no longer whether the sector can perform, but how fast it can scale. Nigeria’s future will be defined by diversification and reduced volatility.

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References

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Biriowo, K. (2025, October 16). Nigeria’s mining sector records 4.85% growth in 2024.

Nigerian Tribune. https://www.zawya.com/en/economy/africa/nigerias-mining-sector-records-485-growth-in-2024-n3n6jcoe

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Ezugwu, O. (2026, January 13). FG launches Lagos gold refinery, $600m Nasarawa

lithium plant; cracks down on illegal ore transport in Kwara. Hallmark News. https://hallmarknews.com/fg-launches-lagos-gold-refinery-600m-nasarawa-lithium-plant-cracks-down-on-illegal-ore-transport-in-kwara/

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Ministry of Solid Minerals Development. (2025). 2023-2024 Mining Sector

Performance And Production Growth Summary. https://msmd.gov.ng/wp-content/uploads/2025/06/2023%E2%80%932024-MINING-SECTOR-PERFORMANCE-AND-PRODUCTION-GROWTH-SUMMARY.pdf

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