The Geological Society of Nigeria (GSN) has strongly criticised the N9 billion allocation for the mining sector in the proposed 2025 appropriation bill, labelling it a significant underinvestment in a sector vital for Nigeria’s economic diversification. This allocation, equivalent to approximately $8 million, accounts for a meagre 1.67% of the Ministry of Solid Minerals Development’s proposed capital expenditure of N539.7 billion.
Speaking at a press briefing in Abuja, GSN President, Mr. Uba Saidu Malami, described the allocation as insufficient to catalyse the sector’s growth and harness Nigeria’s abundant mineral resources, including lithium, nickel, and gold, which are highly sought after globally.
Comparative Underinvestment
Malami emphasised Nigeria’s lagging commitment compared to neighbouring countries in West Africa. He noted that Ghana has allocated $340 million to its mining sector in 2025, while Côte d’Ivoire has earmarked $390 million. These figures underscore the disparity in investment and the lack of prioritisation in Nigeria’s budget.
“This gross underfunding sends a worrying signal about the government’s commitment to realising the full potential of our solid minerals sector,” Malami stated. “We cannot expect to diversify the economy or compete globally with such inadequate funding.”
A Call for Action
While commending President Bola Ahmed Tinubu’s pro-mining agenda, Malami stressed the importance of aligning this vision with sufficient financial backing. He argued that bold rhetoric must translate into decisive action if Nigeria is to generate significant revenue, create jobs, and establish itself as a global mining powerhouse.
“The time for rhetoric is over; it’s time for action. Prioritising the solid mineral sector is imperative for our economic future. With the right investment, this sector can become a cornerstone of our economic transformation,” Malami stated.
His sentiments were echoed by the National Assembly’s Joint Committee on Solid Minerals, which rejected the proposed 2025 budget allocation, describing it as “grossly inadequate” and calling for a significant upward review to accelerate diversification efforts.
The Role of Advocacy in Driving Reform
The current budgetary allocation highlights broader systemic challenges in Nigeria’s mining sector, an area where civil society organisations like Corporate Accountability and Public Participation Africa (CAPPA) have been vocal. CAPPA has consistently called for increased government transparency and investment in mining to address socio-economic and environmental concerns.
CAPPA’s advocacy underscores the need for sustainable mining practices that benefit local communities while preserving the environment. In its recent campaigns, CAPPA highlighted how insufficient funding in the mining sector perpetuates illegal mining activities, environmental degradation, and exploitative labour practices, especially among artisanal miners.
A spokesperson for CAPPA reiterated these concerns: “Without proper funding and regulation, the mining sector cannot fulfil its potential to transform Nigeria’s economy. The government must invest in local miners, enforce environmental standards, and ensure that revenue from mining benefits host communities.”
Unlocking Nigeria’s Mining Potential
Investing in the mining sector is not merely about economic growth—it is about addressing long-standing inequalities and creating opportunities for millions of Nigerians. Adequate funding would facilitate technological advancements, capacity building for local miners, and infrastructure development to support sustainable operations.
For Nigeria to fully capitalise on its mineral wealth, a multi-stakeholder approach is essential. This involves increased government funding, robust legal frameworks, and the active participation of civil society organisations like CAPPA to ensure that mining serves the people, not just corporate interests.
The message from the GSN and advocacy groups is clear: the solid mineral sector must be prioritised in national policy and backed by substantial funding. Failure to act risks leaving Nigeria behind in a competitive global landscape, undermining efforts to reduce dependency on oil and build a more diversified, inclusive economy.