MORGANABLE BUSINESS / MARKETS
Nigeria’s revenue from solid minerals rose by 95.2 per cent to ₦101.11 billion in the first nine months of 2026, as higher royalty payments lifted government receipts from the mining sector.
Akure —
Nigeria’s revenue from solid minerals rose by 95.2 per cent to ₦101.11 billion in the first nine months of 2026, as higher royalty payments lifted government receipts from the mining sector.
The figure compares with ₦51.79 billion recorded between January and September 2025. Data from the Central Bank of Nigeria’s solid minerals revenue collection report showed that collections increased by ₦49.33 billion within one year.
The result comes as the Federal Government seeks to expand mining and reduce dependence on crude oil.
However, the figures also show that the sector’s income did not rise steadily throughout the period.
Monthly collections changed sharply between June and September, with July recording the highest amount and August showing a steep decline.
This uneven pattern highlights the need to sustain production, improve compliance and strengthen the monitoring of mining activities.
Mineral royalties provided the largest share of the revenue. They generated ₦66.12 billion, representing 65.4 per cent of the total collected during the nine-month period.
Meanwhile, fees paid to the Federal Ministry of Solid Minerals Development contributed ₦33.54 billion, or 33.2 per cent. Miscellaneous receipts accounted for the remaining ₦1.45 billion.
The breakdown shows that payments linked to mineral extraction and sales remain the main source of government income from the sector.
Together, royalties and fees provide revenue from both mining operations and the management of mineral rights.
The CBN report also showed a sharp increase in collections in June. Revenue reached ₦16.31 billion, compared with ₦4.75 billion in June 2025.
This represented a year-on-year rise of 243.7 per cent. In other words, the amount collected in June was more than three times the figure recorded in the same month a year earlier.
Mineral royalties accounted for ₦12.62 billion of June’s total, while ministry fees generated ₦3.66 billion. Miscellaneous receipts contributed ₦32.12 million.
Royalties therefore made up about 77.4 per cent of the month’s collections. The figures underline the important role that payments from mineral production played in the increase.
Collections climbed further in July, reaching ₦29.13 billion. This was the highest monthly amount recorded between January and September.
Mineral royalties provided ₦25.78 billion of the total, while ministry fees contributed ₦2.41 billion. Miscellaneous receipts accounted for ₦938.29 million.
However, the strong July performance did not continue into the following month. Total revenue fell to ₦8.47 billion in August, a decline of more than 70 per cent from July.
Royalties contributed ₦8.04 billion, while miscellaneous receipts stood at ₦362.19 million. Ministry fees dropped sharply to just ₦70.84 million.
The decline in August shows why the overall increase needs to be considered alongside monthly performance.
Although the nine-month total was substantially higher than the previous year’s figure, the fall after July points to fluctuations in the timing and level of collections.
It also suggests that a strong month does not necessarily mean that revenue will remain at the same level.
Collections edged up to ₦8.78 billion in September. Royalties generated ₦6.90 billion, while ministry fees contributed ₦1.77 billion. Miscellaneous receipts added ₦116.98 million.
The slight increase from August offered some recovery, but the September total remained far below the July peak.
Even with these monthly changes, the nine-month result has already exceeded the ₦68.1 billion in solid minerals revenue reported for the full year 2025. That comparison suggests that government receipts from the sector have grown.
Nevertheless, the figures cover different reporting periods, so they should not be treated as a direct measure of how much the sector’s output has increased.
The Minister of Solid Minerals Development, Dele Alake, has linked the improvement in revenue to government efforts to reform the industry.
These efforts include stronger enforcement, changes to licensing procedures and the formalisation of mining activities.
The government has also said that better oversight can help improve compliance and ensure that operators pay the required royalties and fees.
Alake has repeatedly argued that the reforms are beginning to produce measurable results. Speaking at the Africa Commodities Conference and Exhibition in Abuja in May 2026, he said the sector was gaining fiscal strength through reform, enforcement and better administration.
He also acknowledged that the latest figures did not yet reflect the full potential of a mature mining industry.
The government’s wider objective is to make mining a stronger contributor to national income.
Nigeria has deposits of minerals such as gold, limestone, lithium, tin, iron ore and barite. These resources support activities across construction, manufacturing, energy and other industries.
However, the presence of mineral deposits alone does not guarantee large public revenue or broad economic benefits.
Illegal mining remains another challenge for the industry. Unlicensed operations can weaken government revenue, encourage unsafe working conditions and make it harder to track mineral production.
They can also damage the environment and create security concerns in areas where mining takes place. Therefore, enforcement must go beyond collecting payments from registered operators.
The latest figures do not, on their own, explain what caused every increase or decline in monthly collections.
In particular, the CBN report does not establish how much of the rise came from higher mineral production, improved payment compliance or changes in revenue administration. It would therefore be premature to attribute the entire increase to one policy or reform.
Still, the rise to ₦101.11 billion marks an improvement in recorded government receipts from solid minerals.
The next test will be whether the sector can maintain stronger collections beyond the first nine months of the year.
More stable monthly revenue, supported by lawful production and effective oversight, would provide a clearer sign of lasting progress.
As Nigeria works to diversify its sources of income, mining offers an opportunity to broaden the economy and support industrial development. However, lasting gains will depend on more than higher royalty payments.
The government must build a system that encourages responsible investment, protects communities and ensures that mineral resources generate fair returns for the country.
For now, the 95.2 per cent increase provides evidence of stronger revenue collection, but it does not mean that the sector has reached its full potential.
Sustained growth will require consistent production, reliable data, transparent regulation and continued action against illegal mining.
Those steps will determine whether the latest increase becomes part of a lasting expansion in Nigeria’s solid minerals industry.
