The National Assembly Joint Committee on Solid Minerals Development has strongly criticised the N9 billion allocation proposed for the Ministry of Solid Minerals Development in the 2025 budget, demanding a substantial upward review. Lawmakers described the allocation as grossly inadequate to support the sector’s critical role in diversifying Nigeria’s economy and addressing challenges like illegal mining.
This call was highlighted in a statement issued by Kania Maliki Andeyaba, Deputy Director of the Press and Public Relations Unit in the ministry.
Lawmakers Decry Insufficient Funding
During the budget defence session on Friday, the Chairman of the Senate Committee on Solid Minerals Development, Senator Sampson Ekong, described the allocation as a disservice to the sector, which is vital to Nigeria’s economic future.
“This budget fails to address the critical needs of the solid minerals sector, a key driver for diversifying Nigeria’s economy,” Ekong stated. “The estimates before us are woefully insufficient to propel the sector’s growth or attract investors. This sector demands a radical upward review of its budget to tackle challenges such as exploration, data gathering, and curbing illegal mining.”
He stressed that the nation’s wealth in solid minerals could help mitigate poverty, but this potential would remain untapped without substantial investment.
Cross-party Support for Increased Funding
Lawmakers across both chambers echoed similar concerns. The Co-Chairman of the Joint Committee, Hon. Jonathan Gbefwi, representing Nasarawa State, questioned how the Ministry could combat insecurity linked to illegal mining or strengthen Nigeria’s foreign exchange reserves with such limited funding.
“How can we curb insecurity linked to illegal mining if the Ministry fails to provide investors with the data required for sound investment decisions?” Gbefwi asked. “By ignoring this, the Ministry is essentially allowing illegal mining to persist.”
Senator Diket Plang of Plateau Central suggested that the approved allocation might have been a typographical error, proposing that the intended figure could be N900 billion, given the Ministry’s initial proposal of N539 billion for capital expenditure.
Ministry’s Impressive Revenue Performance
Minister of Solid Minerals Development, Dr. Dele Alake, defended the Ministry’s position, revealing its impressive revenue performance in 2024.
“We projected N11 billion in revenue for 2024, but by December, we had generated nearly N38 billion. This demonstrates the potential of this sector if adequately funded,” Alake said.
He further explained that the proposed N539 billion for capital projects was essential to achieving Nigeria’s economic diversification goals. The current allocation, however, fell drastically short of these requirements.
“This envelope contradicts Nigeria’s economic diversification goals. We proposed N539 billion for capital projects in 2025, but the approved N9 billion is grossly insufficient,” the Minister stated.
Joint Committee Resolutions
Recognising the peculiarities of the solid minerals sector, the Joint Committee resolved to suspend further actions on the Ministry’s budget until significant adjustments are made.
The lawmakers agreed that bold interventions and adequate funding were necessary to unlock the sector’s potential. The committee noted that proper investment could address the contradictions of abundance amidst poverty, enhance Nigeria’s foreign exchange reserves, and combat illegal mining activities.
A Call for Strategic Investment
The session concluded with a united call for the federal government to reconsider the allocation. Lawmakers emphasised that the solid minerals sector is key to economic recovery, national security, and sustainable development.
“The spirit of this meeting is clear: the budget must be reviewed upwards to reflect the sector’s importance to Nigeria’s economic future,” Senator Ekong asserted.
As deliberations continue, stakeholders hope the federal government will heed this call to action, recognising the solid minerals sector as a cornerstone of Nigeria’s economic transformation.
