The Minister of Solid Minerals Development, Dr Dele Alake, has voiced strong criticism over the proposed N9 billion as poor allocation for the mining sector in the 2025 budget. Highlighting its insufficiency to unlock the sector’s potential, Alake called for a substantial upward review to drive Nigeria’s economic diversification.

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    The minister made this stance clear through a statement shared on his X page on Saturday, describing the poor allocation as “unacceptable” and detrimental to the development of the nation’s solid minerals industry.

    Insufficient Funding Undermines Growth

    Dr Alake pointed out that significant progress had been achieved in the sector during 2024, including the creation of 45,000 new jobs—an increase from 30,000 in the previous year—and the generation of N38 billion in revenue, far surpassing the projected N11 billion.

    However, he expressed deep concerns that the proposed 2025 allocation of N9 billion would cripple the ministry’s ability to sustain reforms and undertake critical exploration projects.

    “We have successfully drawn global attention to Nigeria’s mining sector while exceeding revenue expectations despite working with only 18% of our 2024 capital budget,” Alake stated.

    “For 2025, we proposed over N531 billion in capital expenditure to enable large-scale investments in exploration and geo-data generation. Instead, we were allocated just N9 billion—a grossly poor allocation sum that threatens to derail progress. We urgently call on the National Assembly to support a substantial review,” he added.

    Legislative Rejection of Budget

    On Friday, the Joint National Assembly Committee on Solid Minerals unanimously rejected the proposed N9 billion capital budget for the mining sector. The committee argued that the allocation was insufficient to position solid minerals as a cornerstone of Nigeria’s economic diversification and the green energy transition.

    Senator Ekong Sampson, Chairman of the Joint Senate and House of Representatives Committee on Solid Minerals, underscored the need for substantial investments in exploration and other critical areas. He emphasised that the poor allocation would hinder the sector’s potential to generate significant revenue and reduce the nation’s reliance on oil.

    Similarly, Hon Gaza Gbefwi, Co-chairman of the committee and Chairman of the House Committee on Solid Minerals, criticised the drastic reduction from the ministry’s proposed N531 billion to N9 billion, calling it a “disservice to the sector.”

    “As elected representatives, we cannot allow misplaced priorities to jeopardise the future of generations. Solid minerals offer immense potential to diversify our economy, but we must invest in the sector today. History will not forgive us if we fail to act decisively,” Gbefwi asserted.

    Call for Immediate Review

    Senator Natasha Akpoti-Uduaghan joined the call for a significant upward revision, urging a halt to the screening process for the ministry’s budget until the allocation was reconsidered.

    In a unanimous decision, the committee resolved to suspend further budget screening and summoned the Ministers of Budget and National Planning, as well as Finance, to address the matter.

    The committee stressed that the mining sector’s budget must be revised to reflect its critical role in Nigeria’s economic transformation.

    Nigeria’s Untapped Potential

    Despite its vast mineral wealth, Nigeria’s mining sector remains underdeveloped, contributing less than 1% to the nation’s GDP. Challenges such as insufficient incentives, low investment, illegal mining activities, and years of neglect have hindered the sector’s growth.

    While the country continues to dominate as Africa’s leading energy producer, its reliance on oil has made diversification an urgent necessity. The proper funding and development of the mining sector are essential to achieving this goal and ensuring long-term economic stability.

    Way Forward

    Dr Alake’s appeal and the Joint National Assembly Committee’s rejection of the proposed allocation signal a turning point for Nigeria’s mining sector. With robust investment and strategic reforms, the sector has the potential to drive economic growth, generate significant revenue, and position Nigeria as a global player in solid minerals.

    The government must seize this opportunity to prioritise funding and ensure that the sector’s development aligns with the nation’s broader economic goals.

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