By David Akinadewo-Adekahunsi
The Joint National Assembly Committee on Solid Minerals has rejected the proposed N9 billion capital budget for the mining sector in the 2025 fiscal year, describing it as grossly insufficient to support the sector’s role as a key driver of Nigeria’s economic diversification.
The committee has also suspended the budget screening process, insisting on an upward revision to meet the sector’s critical funding needs.
During the budget defence session on Friday, Senator Ekong Sampson, Chairman of the Joint Senate and House of Representatives Committee on Solid Minerals, expressed the committee’s disappointment with the allocation.
He argued that the proposed funding fell far short of the investment required to unlock the sector’s potential, especially in exploration, a crucial component for attracting international investment and facilitating Nigeria’s transition to green energy.
Honourable Gaza Gbefwi, Co-chairman and Chairman of the House Committee on Solid Minerals, echoed these sentiments.
He criticised the drastic reduction of the ministry’s initial N531 billion capital expenditure proposal to a mere N9 billion, describing it as a setback to economic diversification efforts.
“We cannot, in good conscience, approve a budget that jeopardises the future of our economy. Solid minerals represent one of the most promising avenues for diversifying our revenue base, and neglecting this sector would be a grave error,” Gbefwi said.
He further called attention to other African nations, such as Botswana, South Africa, and Ghana, which have significantly invested in mining exploration, urging Nigeria to follow their example.
Minister of Solid Minerals Development, Dr. Dele Alake, highlighted the progress made by his ministry despite limited resources.
Over the past year, the ministry has increased job creation in the sector from 30,000 to 45,000 and surpassed its revenue projection of N11 billion, generating N38 billion.
However, he cautioned that these achievements could not be sustained without adequate funding.
Dr. Alake explained that the ministry had proposed a N531 billion capital expenditure in the 2025 budget to fund exploration and generate the geo-data required to attract major investors.
The N9 billion allocation, he argued, would severely hamper these efforts, stalling the sector’s growth and its contribution to the national economy.
“We have made significant progress in drawing global attention to Nigeria’s mining sector, but for this progress to continue, we need the support of the National Assembly to ensure a more realistic budget allocation,” Dr. Alake said.
Adding her voice to the call for increased funding, Senator Natasha Akpoti-Uduaghan described the current budget proposal as inadequate and unsustainable for a nation seeking to develop its mining industry. She supported the suspension of the budget screening process until the allocation is reviewed.
Following a unanimous decision, Senator Ekong Sampson announced the committee’s resolution to reject the 2025 budget proposal for the ministry, suspend further budget screening, and summon the Ministers of Budget and National Planning, as well as Finance, to defend the need for an increased allocation.
The committee stressed that investing adequately in the mining sector is essential to harness Nigeria’s vast mineral resources and secure the nation’s long-term economic growth.
This decision underscores the growing recognition of the solid minerals sector as a vital pillar for Nigeria’s economic transformation beyond oil dependency.
The National Assembly’s stance marks a pivotal moment in the drive to prioritise investments that will shape the future of the nation’s economy.
