Mr Viral
The Minister of Solid Minerals Development, Dr. Dele Alake, has criticised the N9 billion capital budget allocated to the mining sector in the 2025 budget, calling for an upward review.
This was disclosed via his X page on Saturday.
Alake revealed that he had submitted to the National Assembly (NASS) that the allocation was grossly “unacceptable” and inadequate to unlock Nigeria’s mining potential for the nation’s economic benefit.
Unacceptable Allocation According to Dr Dele Alake, reforms in the mining sector in 2024 created 45,000 new jobs, up from 30,000 the previous year.
He also highlighted that the 2024 revenue projection of N11bn was exceeded, with N38bn generated in the year under review.However, he faulted the proposed N9bn budget, stating that it would hinder significant investment in exploration activities.He urged lawmakers to ensure that the sector’s projects are not negatively affected by inadequate budgetary allocation.
“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.
“In our budget proposals for 2025, we estimated over N531bn for capital expenditure but were allocated a mere N9bn. This is unacceptable, as it will hinder any significant investment in exploration, which is crucial for generating the geo-data that will attract major players. We seek the support of the National Assembly for a radical upward review of the budget,” Alake stated.
More Insights On Friday, the Joint National Assembly Committee on Solid Minerals rejected the proposed N9 billion capital budget for the mining sector in the 2025 budget.
The committee emphasised that the allocation falls drastically short of the investment required to position solid minerals as a cornerstone of economic diversification.The Chairman of the Joint Senate and House of Representatives Committee on Solid Minerals, Senator Ekong Sampson, noted that substantial investments in exploration and other critical areas are needed to tap into the potential of solid minerals and drive the transition to the green energy revolution.The Co-Chairman and House Committee Chairman on Solid Minerals, Hon. Gaza Gbefwi, also criticised the reduction of the proposed N531 billion 2025 capital expenditure proposal for the mining sector.He described it as a disservice to the sector, limiting Nigeria’s ability to generate revenue beyond oil.“As a House, we will not allow the future of generations to be compromised because of misplaced priorities. We, as elected representatives, 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.
Senator Natasha Akpoti-Uduaghan called for the suspension of the screening process until an upward review is implemented.
Following a unanimous voice vote, the committee resolved to reject the proposed 2025 budgetary estimates.
The committee also suspended further screening of the ministry’s budget and invited the Ministers of Budget and National Planning, as well as Finance, to advocate for an upward review of the mining sector’s budget allocation to ensure Nigeria fully maximises the potential of its mineral resources.What You Should Know While Nigeria stands as Africa’s leading energy producer, it has struggled to maximise its extensive mineral resources due to insufficient incentives, illegal activities, low investment opportunities, and neglect.
The nation’s underdeveloped mining sector contributes less than 1% to its gross domestic product.
Nnaemeka Onyekachi My name is Nnaemeka Onyekachi, a writer, public speaker and an award winning journo with over 5,000 reports on a wide range of topics associated with the Nigerian society and the international community. Currently serving as a Senior Editorial Analyst at Nairametrics, my passion lies in delivering insightful financial,corporate, economic news and analysis on foreign relations, governance, judiciary and legislature.
GIPHY App Key not set. Please check settings