Emmanuel Addeh in Abuja
The Ministry of Solid Minerals Development (MSMD) has generated a total of N15.62 billion in revenue in the first quarter of 2026, a Federation Account Allocation Committee (FAAC) document seen by THISDAY has indicated.
The revenue, which covered the period from January to March 2026, highlighted the ministry’s pivotal role in the federal government’s ongoing economic diversification efforts through the extractive industry.
A granular breakdown of the quarterly performance revealed that February was the ministry’s most productive month, yielding N5.62 billion, which accounted for approximately 36 per cent of the total Q1 collection.
This was followed closely by the January collection of N5.12 billion, accounting for 32.8 per cent of the total, while March recorded a slight dip to N4.87 billion, representing 31.2 per cent of the quarterly total.
Despite the minor month-on-month decline in March, the cumulative figure of N15.6 billion has set a strong precedent for the ministry’s annual revenue target, which is pegged at a total approved budget of N41.97 billion for the year 2026.
Analysing the March performance against the government’s set benchmarks, the ministry recorded a significant positive budget variance. With a monthly target set at N3.49 billion, the actual collection of N4.87 billion represented an impressive 39.4 per cent over-performance against the budget.
However, this success was largely driven by royalty collections rather than administrative fees. In March alone, royalties accounted for the entirety of the N4.87 billion revenue, significantly exceeding the monthly royalty target of N2.24 billion by over 116 per cent. This surge in royalties suggests an increase in mining activity or more efficient collection mechanisms within the mineral-producing sectors.
Conversely, the data highlighted a notable challenge in the collection of fees. While the monthly target for fees was set at N1.24 billion, the ministry recorded “NIL” collections for this category in March. This resulted in a 100 per cent negative variance for fees during the month under review.
Official notes accompanying the revenue schedule attributed this deficit to technical and administrative issues within the Mining Cadastral Office, which reportedly delayed the remittance of these specific payments into the Federation Account.
When compared to February’s performance, the March collection saw a decrease of approximately N744.99 million, marking a 13.2 per cent monthly variance decline. This dip is primarily attributed to the non-remittance of fees, as February had successfully generated N2.81 billion from that stream.
The February fees collection was particularly strong, exceeding its own target by over 125 per cent, which bolstered that month’s record-breaking figures.
The ministry’s leadership remained optimistic in their assessment of the figures, noting that the recorded positive variance of N1.377 billion in March, when compared to the total monthly target, proved that the ministry is on the right track to meeting its annual obligations.
