Nigeria’s mining and quarrying sector posted a strong rise in tax contributions in 2025, generating N723.33 billion in Company Income Tax. The latest figures signal growing relevance for a sector once considered marginal to government revenue.
Data from the National Bureau of Statistics shows a clear year-on-year increase from N520.34 billion recorded in 2024, reflecting stronger performance and improved oversight.
The sector’s growth played out unevenly across the year. Tax collections stood at N142.87 billion in the first quarter, climbed to N212.27 billion in the second, and peaked at N244.86 billion in the third quarter. However, collections dropped sharply to N123.34 billion in the final quarter, suggesting lingering structural issues despite overall progress.
Compared to 2024, where quarterly figures ranged between N80.92 billion and N170.73 billion, the 2025 performance highlights a notable improvement in compliance and regulatory enforcement. Still, the late-year dip points to ongoing challenges within the industry.
For years, Nigeria’s mining sector has underperformed despite the country’s vast mineral reserves. It contributes less than five percent to GDP, weighed down by illegal operations, weak incentives, and infrastructure gaps. Revenue sources such as royalties and licensing fees have also remained largely underutilised.
Recent policy changes appear to be shifting that narrative. In June 2025, President Bola Ahmed Tinubu approved a set of tax reform laws aimed at modernising the system and improving revenue collection. One of the key changes includes moving mineral royalty collection under the Nigeria Revenue Service to reduce leakages and improve accountability.
Additional figures show the Federal Government earned N6.96 billion from mining fees in the first quarter of 2025, pointing to untapped revenue streams beyond corporate taxes.
However, broader tax data reveals a mixed picture. Total Company Income Tax collections across all sectors fell significantly in the fourth quarter of 2025, dropping to N1.49 trillion from N2.96 trillion in the previous quarter. Domestic companies contributed N819.83 billion, while foreign firms accounted for N668.21 billion during the period.
Key Highlights
- Mining sector generated N723.33 billion in CIT in 2025
- Year-on-year growth exceeded 38 percent from 2024
- Q3 recorded the highest collections before a sharp Q4 decline
- Tax reforms and improved oversight boosted revenue performance
- Sector still contributes less than five percent to GDP
Nigeria’s mining sector is showing signs of recovery and growing fiscal importance, but structural weaknesses remain. Sustained reforms and investment will be key to unlocking its full potentials
image credit: HumAngle
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