Dele Alake
South-West well positioned to benefit from President Tinubu’s solid minerals sector reforms – Alake
The Minister of Solid Minerals Development, Dr. Dele Alake, said the South-West region is well-positioned to benefit from the reforms going on in solid minerals sector in the country.
Alake, who spoke at the South West Leaders Conference in Akure, Ondo State, on Wednesday, October 29, 2025, said, the South West has the most successful gold mining project in Nigeria, including Segilola/Thor project, that in 2024, declared a turnover of $193 million dollars at its international headquarters.
He said the project employs, over 2,000 workers and 80 percent of them are youths below 40 years.
“Segilola pays the highest tax and royalties in the gold mining subsector. And much of this credit for growing Nigeria’s face in the global gold sector goes to your son, Segun Lawson, the Chairman and Chief Executive Officer,” he said.
Second, the minister said, “with massive mineral deposits given by Olodumare, South West has gold, lithium, limestone, granite, clay, silica sand, feldspar, kaolin, laterite, quartz, mica, beryllium and the world’s best gemstones. Our people are showing interest and are active in the mining sector. Our records show that companies from the South-west hold 1,801 mineral titles out of the 9,592 nationwide. These include 630 exploration licences, 51 mining leases, 284 quarry leases and 836 small scale mining leases.
“As at October 15, this year Ogun has the highest number of titles with 481, followed by Oyo, 440 and Osun, 374.”
According to him, “The fact that the South West has the largest concentration of quarry leases in the country also explains the concentration of companies manufacturing mining explosives. The Solar Niga Chem and Intrachem operate from Ogun State and feed the mining sector through dealer firms such as Dynatrach and Tuntise.”
He said, “I am glad that our people are fully involved in the mining value chain. We have issued licences for 46 private mineral buying centres centres and 369 co-operatives with 5,734 members. I must emphasize that establishing co-operatives is the non-kinetic component of our strategy to secure the sector by reducing illegal mining.
“Osun has the highest number of co-operatives with 158 comprising 1,648 members followed by Lagos, (77) and Oyo (47). Currently, we digitising the register of co-operatives by taking their co-operatives. Not less than 80 has been captured in the South-West so far.
“While we encourage more investment in the country, we insist that our people should not be cheated. We encourage all communities on mineral bearing land in Nigeria to set up committees that can engage investors to negotiate the compulsory Community Development Agreement, CDA.
“The law is very clear: a mining company must sign a CDA, stating in clear terms, how it intends to impact the development of the mining community before commencing mining.”
He disclosed that “from our records, 99 CDAs have been signed in South West till date. Significantly, not less than 45 communities in the South-West signed CDA between September 2023 and now, indicating the aggressiveness with we have implemented the policy by doubling the CDA record of over 15 years in just two years!”
He recalled that as part of the Seven Point Agenda, “we set up the Nigerian Solid Minerals Company as successor in title to the defunct Nigerian Mining Corporation, adding that the company, currently under the Ministry of Finance Incorporated, is expected to have a private sector orientation by having 50 per cent shares of mega mining companies, 25 per cent of the Federal Government and 25 percent of Nigerian shares by IPO.
“This company will engage in joint venture projects with local and international investors on brown and green fields, encourage skills transfer and promote gainful employment of Nigerians to create the capital formation necessary to reposition the sector as Nigeria’s next major revenue earner.
“Our reforms of the rates regime in licences and royalties have accelerated sectoral stability and boosted revenue. The revocation of 3,794 titles of defaulting and dormant companies have reduced speculation and attracted serious investors. The increase in administration of licence fees and royalties have raised the bar of industrial consciousness by encouraging mergers and acquisitions.
“Again, the results are evident in the revenues of the Mining Cadastral Office, that, in one year doubled from N6billion in 2023 to N12.5 billion in 2024. In fact, from January to last week, the figure increased again by about 110 per cent with the record of N26.7 billion revenue. As we approach the end of the year, we are confident that we shall achieve more,” he said.
According to him, “our progress at home has been matched with renewed vigour and creativity in attracting investors to Nigeria abroad. Our campaign for value addition, first articulated at the Future Minerals Forum in January, 2024, inspired Ministers of Mining in Africa to set up the Africa Minerals Strategy Group and I was unanimously elected the pioneer Chairman of the AMSG. The gospel of value addition is spreading like wild fire across Africa as more countries abandon the unprofitable and devastating raw minerals export policy for the industrial, job -creating, skills -transferring value addition.
“The implementation of this policy by our administration has produced new start-up projects in processing. These include the impending groundbreaking of the $400 million Africa’s largest rare earth plant, the lithium processing plants of Asba Company, Canmax Technology, Avatar New Energy Nigeria Company, totaling $1.7 billion Foreign Direct Investment.
“When we consider the multiplier effects of these numerous developments, we will not be surprised by the recent reports of statistical agencies and economic monitors such as the Nigerian Bureau of Statistics, NBS and the Nigerian Extractive Industry Transparency Initiative, NEITI. The NBS reported that overall growth of the sector rose from 2.84 per cent in 2023 when we took over to 4.85 per cent in 2024. It added that contribution to aggregate GDP moved from 5.56 to 5.64 percent in the period.”
He concluded by appealing to the local traditional and modern authorities in Nigeria generally and South West in particular to join “our campaign against illegal mining, support for co-operatives and value addition. As it is said, our past is a story already told, our future shall be written in gold.
About The Author
