The National Assembly’s joint committee has called for an upward review of the N9 billion allocation proposed for the Solid Minerals Development Ministry in the 2025 budget to advance the country’s mining sector.
Identifying discrepancies in the budget proposal, the joint committees of the Senate and the House of Representatives on Solid Minerals Development stated that the N9 billion approved for the ministry in the 2025 budget is too small and significantly lower than the N539 billion the ministry projected for capital expenditure alone.
During a joint budget defence session recently, members described the N9 billion allocation as grossly inadequate to meet the sector’s needs in 2025.
Chairman of the Senate Committee on Solid Minerals Development, Senator Sampson Ekong remarked, “This budget fails to address the critical needs of the solid minerals sector, which is a key driver of Nigeria’s economic diversification. The estimates before us are woefully insufficient to foster sector growth or attract investors. This sector demands a substantial upward review of its budget to tackle challenges such as exploration, data gathering and combating illegal mining.”
He further emphasised, “We need significant investment to overcome the contradiction of having abundant resources amidst widespread poverty. The spirit of this meeting is clear: the budget must be revised upwards to reflect the sector’s importance to Nigeria’s economic future.”
Other lawmakers expressed similar concerns about the inadequacy of the ministry’s budget allocation. Co-chairman of the joint committee, Hon. Jonathan Gbefwi representing Nasarawa State, voiced worries regarding the ministry’s budget envelope.
Gbefwi questioned how such insufficient funding could empower Nigeria to strengthen its foreign exchange reserves and address security challenges linked to illegal mining in the North and other regions of the country.
He stated, “How can we tackle insecurity related to illegal mining if the ministry fails to provide investors with the necessary data for informed investment decisions? By neglecting this, the ministry is enabling illegal mining to continue.”
In defence of the Executive, Senator Diket Plang, representing Plateau Central Senatorial District, suggested that the N9 billion allocation might be a typographical error. He posited that the actual figure could be N900 billion, considering the significance of the ministry’s proposal and its role in national economic diversification.
Earlier in the session, the Minister of Solid Minerals Development, Dr. Dele Alake remarked, “This envelope contradicts Nigeria’s economic diversification goals. We proposed N539 billion for capital projects in 2025, yet the approved N9 billion is extremely insufficient.”
The minister also highlighted the ministry’s strong revenue performance, which exceeded projections for 2024. He noted, “We anticipated N11 billion in revenue for 2024, but by December, we had generated nearly N38 billion. This demonstrates the sector’s potential if adequately funded.”
A statement from the deputy director of the press and public relations unit, Kania Andeyaba indicated that the joint committee recognised the unique aspects of the solid minerals sector that necessitate bold interventions and sufficient funding to unlock its potential. Consequently, it resolved to suspend further actions on the ministry’s budget until significant adjustments are made.
