The proposed 2025 budget for Nigeria’s Ministry of Solid Minerals has been rejected by the Joint National Assembly Committee, citing inadequate funding for the mining sector.
The committee expressed concerns that the ₦9 billion capital budget allocated to the ministry fell far short of the ₦531 billion initially proposed, hindering the sector’s potential as a cornerstone for economic diversification.
The Ministry of Solid Minerals had initially proposed a capital expenditure budget of ₦531 billion for 2025. However, this was drastically reduced to ₦9 billion during budgetary deliberations.
The cutback was met with strong opposition from members of the Joint Committee, who described the allocation as insufficient to realize the sector’s potential.
Senator Ekong Sampson, Chairman of the Joint Senate and House of Representatives Committee on Solid Minerals, expressed the committee’s displeasure with the reduced allocation.
He stressed that significant investments in exploration and development are critical for solid minerals to contribute meaningfully to Nigeria’s economic diversification and transition to green energy.
Co-chairman and House Committee Chairman on Solid Minerals, Gaza Gbefwi, condemned the reduction, describing it as a disservice to the nation. He highlighted the crucial role the solid minerals sector plays in diversifying Nigeria’s economy and reducing its over-reliance on oil revenue.
“As a House, we will not allow the future of generations to be compromised because of misplaced priorities.
We understand the urgent need to diversify our economy, and no sector holds more promise in this regard than solid minerals. If we miss this opportunity to invest today, future generations will not forgive us,” Gbefwi stated.
His sentiments underscored the shared concern among lawmakers that the budget cut undermines Nigeria’s ability to tap into the full potential of its vast mineral resources.
The Minister of Solid Minerals Development, Dele Alake, decried the allocation as unacceptable and sought the committee’s support for a review. He highlighted the ministry’s achievements under President Bola Tinubu’s administration, emphasizing its success in attracting foreign investors and surpassing revenue projections despite limited funding.
“We have not only succeeded in attracting global attention to Nigeria’s mining sector, but we have also seen an increase in revenue, despite receiving only 18% of our 2024 capital budget,” Alake noted.
He added that the ₦9 billion allocation for 2025 would hinder critical exploration activities, including the generation of geological data needed to attract major players in the mining industry.
In light of the budget reduction, the Joint National Assembly Committee resolved to reject the proposed 2025 budgetary estimates for the Ministry of Solid Minerals.
The committee also suspended further budget screening for the ministry and issued an invitation to the Ministers of Budget and National Planning, as well as Finance, to advocate for a significant upward review of the mining sector’s allocation.
Chairman Ekong Sampson emphasized the importance of prioritizing the solid minerals sector for economic growth, stating, “We must ensure the nation fully maximizes the potential of its mineral resources. Anything less is a disservice to Nigeria’s future.”
The solid minerals sector is viewed as a key driver of Nigeria’s economic diversification agenda. With over 40 different mineral types across the country, the sector holds immense potential to generate revenue, create jobs, and reduce dependence on oil. However, achieving these goals requires substantial investment in exploration, infrastructure, and the generation of geo-data to attract global mining firms.
Legislators and stakeholders alike recognize that the sector’s development is pivotal to positioning Nigeria as a competitive player in the global transition to green energy. Without adequate funding, the country risks losing out on this opportunity to harness its vast mineral wealth.
The rejection of the proposed 2025 budget for the Ministry of Solid Minerals by the Joint National Assembly Committee sends a strong message about the need for proper investment in the sector. Lawmakers have made it clear that they will not accept a budget that compromises the future of the nation’s mineral resources.
By advocating for an upward review of the budget, the committee aims to ensure that Nigeria fully capitalizes on its solid mineral assets to drive economic growth, diversify revenue sources, and secure a sustainable future for generations to come. The ball is now in the court of the federal government to prioritize this critical sector and address the committee’s concerns.