The Joint National Assembly Committee on Solid Minerals has refused to approve the proposed N9 billion capital allocation for the mining sector in the 2025 budget, citing its inadequacy to transform the sector into a cornerstone of Nigeria’s economic diversification agenda.
During the budget defense session on Friday, Ekong Sampson, chairman of the Joint Senate and House of Representatives Committee on Solid Minerals, expressed dissatisfaction with the proposed allocation. He highlighted that significant investments in exploration and other critical areas are essential to unlock the mining sector’s potential, particularly in driving the move to green energy.
Also, Gaza Gbefwi, co-chairman and House Committee chairman on Solid Minerals, criticized the reduction of the initial N531 billion capital expenditure proposal to just N9 billion. He described the move as a disservice to the sector, which he deemed essential for generating revenue beyond oil.
“As lawmakers, we cannot allow future generations to suffer the consequences of misplaced priorities. Diversifying the economy is an urgent necessity, and the solid minerals sector holds unmatched potential in this regard. Neglecting investment today would be an unforgivable oversight,” Gbefwi stated.
He referenced examples from countries like Botswana, South Africa, and Ghana, which have invested heavily in exploration, and argued that Nigeria’s vast mineral reserves remain underutilized due to inadequate funding.
Minister of Solid Minerals Development, Dele Alake, highlighted progress in the sector, including the creation of 45,000 jobs in 2023, up from 30,000 in 2022. He also noted that the ministry exceeded its 2024 revenue projection of N11 billion, generating N38 billion despite operating on just 18 percent of its allocated capital budget. “In 2025, we proposed over N531 billion for capital expenditure to accelerate exploration and attract major players, but only N9 billion was approved. This shortfall will severely limit our ability to generate geo-data essential for the sector’s growth. We urge the National Assembly to significantly increase this allocation,” he emphasized.
Senator Natasha Akpoti-Uduaghan from Kogi State joined the call, urging the suspension of further deliberations until the proposal is reassessed. She emphasized the critical need for adequate funding to develop the sector.
In a unanimous decision, the committee, led by Ekong Sampson, resolved to reject the proposed budgetary estimates for 2025, suspend further consideration of the ministry’s budget, and summon the ministers of finance and budget and national planning. The aim is to advocate for a substantial increase in the mining sector’s allocation to fully leverage Nigeria’s mineral wealth.
