FG Commences Skeletal Operation of Solid Minerals Company
The Federal Government has announced the commencement of skeletal operations of the Nigerian Solid Minerals Company (NSMC), a strategic initiative modeled after the Nigeria Liquefied Natural Gas (NLNG) to reposition the solid minerals sector as a key pillar of national economic transformation.
The announcement was made by the Minister of Solid Minerals Development, Dr. Dele Alake, during the opening session of a two-day ministerial retreat in Abuja. The retreat, themed “Development, Enhancing Performance, Strengthening Accountability, and Fostering Innovation in the Solid Minerals Sector,” brought together policymakers, lawmakers, and key stakeholders to assess the progress of the sector and map out strategies for the future.
Dr. Alake explained that the creation of the NSMC marks a turning point in the federal government’s renewed push to harness Nigeria’s vast mineral wealth.
He stated that the company, now operational in its Abuja office, will differ fundamentally from the defunct Nigerian Mining Corporation (NMC). Unlike the NMC, which was wholly government-owned, the NSMC is structured as a public-private partnership.
Ownership will be distributed as 50 percent to private investors, 25 percent to the federal government, and 25 percent to Nigerian citizens through a public offer.
The company will inherit and optimize assets previously held by the NMC while operating under a modern, commercially driven governance model.
Appointed to lead the new company is Mr. Martins Imonitie, a seasoned banker and expert in mining finance, who has assumed duty as its pioneer Chief Executive Officer. Dr. Alake described Imonitie’s appointment as a strategic move to ensure that the company is steered by experienced hands capable of attracting investment and ensuring operational efficiency.
In his address, the Minister highlighted what he described as remarkable progress made in the sector over the past two years despite various challenges.
He noted that the ministry has implemented wide-ranging reforms including the deployment of Mining Marshals to tackle illegal mining, the strengthening of geological data systems, the formalization of artisanal miners into cooperatives, and the adoption of the African Union’s Value Addition policy to increase domestic processing of minerals.
These reforms, he said, are beginning to yield measurable results.
Dr. Alake revealed that revenue generated from the sector increased significantly from ₦12 billion in 2023 to ₦36 billion in 2024. He added that licensing revenue grew from ₦6.07 billion to ₦12.58 billion in the same period.
The number of registered mining companies rose from 883 to 1,025, while royalty payments more than doubled from ₦17.5 billion to ₦36.8 billion. He attributed these gains to the ministry’s Seven-Point Agenda, which is designed to make the solid minerals sector globally competitive while deepening local participation.
The Minister stressed that these reforms align with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which demands measurable outcomes and impact-driven governance across all ministries.
He emphasized that the time for rhetoric is over and that the focus must now shift to action, innovation, and results.
Addressing ministry staff, Alake issued a stern warning, giving all personnel a seven-day ultimatum to become digitally compliant or face disciplinary consequences.
He declared that the days of analog bureaucracy were over, urging all staff to embrace technology and adapt to new operational standards.
Dr. Alake emphasized that success in the solid minerals sector must not be measured by revenue alone, but also by the degree to which the ministry achieves environmental sustainability, promotes gender inclusion, empowers youth, strengthens institutions, and ensures that economic benefits are equitably shared among all Nigerians.
However, the Minister also identified a major challenge confronting the sector: increasing conflicts with state governments, some of which have imposed unilateral bans on mining activities within their jurisdictions.
He reminded the audience that under the 1999 Constitution, minerals are on the Exclusive Legislative List and fall solely under the regulatory authority of the federal government. While stressing the importance of cooperation with state authorities, he reaffirmed that federal oversight remains the legal framework guiding mining operations in the country.
Meanwhile, the Minister received commendation from members of the National Assembly for his leadership and reforms.
Senator Ekong Sampson, Chairman of the Senate Committee on Solid Minerals Development, and Hon. Jonathan Gaza Gbefwi, Chairman of the House Committee on Solid Minerals, both lauded the establishment of the NSMC and the overall transformation agenda of the ministry.
They pledged full legislative support to pass key bills and reforms that would unlock the full potential of Nigeria’s solid minerals sector.
In his concluding remarks, Senator Sampson declared that with sustained reforms and political will, the solid minerals sector could become Nigeria’s next economic game-changer, providing jobs, foreign exchange, and long-term industrial growth for the nation.
