For the progress of the country’s mining sector, National Assembly Joint committees have demanded upward review of N9 billion allocation made for Solid Minerals Development Ministry in 2025 budget proposal.
The Joint Committees of the Senate and House of Representatives on Solid Minerals Development, while noting discrepancy in the proposal, said that the total N9 billion approved envelope for the Ministry in the 2025 Budget was too small and far below the N539 billion the Ministry projected for capital expenditure alone.
This took place on Friday during the joint session of the budget defence in the National Assembly.
The N9 billion envelope was described as grossly inadequate to cater for the sector’s needs in 2025.
Chairman of the Senate Committee on Solid Minerals Development, Senator Sampson Ekong, according to a statement by Deputy Director (Press and Public Relations Unit) in the Ministry of Solid Minerals Development, Kania Maliki Andeyaba, said “This budget fails to address the critical needs of the solid minerals sector, a key driver for diversifying Nigeria’s economy,
“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.
“This sector needs substantial investment to overcome the contradictions of abundance amidst poverty. The spirit of this meeting is clear: the budget must be reviewed upwards to reflect the sector’s importance to Nigeria’s economic future.” he said
Also on the matter, the Co-Chairman of the Joint committee, Hon. Jonathan Gbefwi, representing Nasarawa State, expressed deep concerns about the Ministry’s budget envelope.
He queried how such inadequate funding could position Nigeria to strengthen its foreign exchange reserves and address security challenges, especially those tied to illegal mining in the North and other parts of the country.
Gbefwi asked “How can we curb insecurity linked to illegal mining if the ministry fails to provide investors with the data required for sound investment decisions?
“By ignoring this, the ministry is essentially allowing illegal mining to persist.” he added.
Defending the Executive Arm, Senator Diket Plang, representing Plateau Central Senatorial District, pointed out that the approved N9 billion allocation might be a typographical error.
He said that the actual figure could be N900 billion, given the magnitude of the ministry’s proposal and its importance to national economic diversification.
Speaking earlier during the session, the Minister of Solid Minerals Development, Dr. Dele Alake said “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 also highlighted the Ministry’s strong revenue performance, which surpassed the projections for year 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,” he said
The Joint Committees thereafter took cognizance of the peculiarities of the Solid Minerals sector that require bold interventions and adequate funding to unlock its potential.
It therefore resolved to suspend further actions on the Ministry’’s budget until significant adjustments are made.