National Assembly committee rejects N9bn mining budget, demands increase

The Joint National Assembly Committee on Solid Minerals has rejected the proposed N9 billion capital allocation for the mining sector in the 2025 budget, describing it as grossly inadequate to unlock the potential of solid minerals as a cornerstone of Nigeria’s economic diversification.

During a budget defense session on Friday, Senator Ekong Sampson, Chairman of the Joint Senate and House of Representatives Committee on Solid Minerals, criticized the proposed allocation, stating that without substantial investment in exploration and other critical areas, the sector’s potential to drive green energy transition and economic growth would remain untapped.

“The proposed allocation is insufficient to drive the reforms and exploration necessary for positioning solid minerals as a key revenue generator. Nigeria’s transition to a diversified economy is at risk if investments in this sector are continually undermined,” Sampson said.

Echoing his sentiments, Hon. Gaza Gbefwi, Co-chairman and Chairman of the House Committee on Solid Minerals, condemned the drastic reduction of the ministry’s initial N531 billion capital expenditure proposal to just N9 billion.

He described the move as a disservice to the sector and warned of the long-term consequences of neglecting investments in mining.

“As elected representatives, we cannot compromise the future of generations due to misplaced priorities. Solid minerals hold immense potential to generate revenue beyond oil. If we fail to invest now, history will not forgive us,” Gbefwi declared, urging the government to take cues from countries like Botswana and South Africa, which have heavily invested in exploration to boost their economies.

Minister of Solid Minerals Development, Dr. Dele Alake, in his remarks, highlighted the successes of the ministry’s reforms over the past year, which created 45,000 jobs, up from 30,000 the previous year, and generated N38 billion in revenue—far exceeding the 2024 projection of N11 billion.

However, Alake expressed dissatisfaction with the proposed 2025 allocation.

“We estimated over N531 billion for capital expenditure in 2025, but were allocated only N9 billion. This allocation will hinder any significant investment in exploration, which is crucial for generating the geo-data needed to attract global players. We call on the National Assembly to support a radical upward review of the budget,” he said.

Senator Natasha Akpoti-Uduaghan also joined the call for a significant increase in the mining sector’s allocation, urging the committee to suspend the screening process until the budget is reviewed.

Following a unanimous vote, Senator Sampson announced the committee’s decision to reject the proposed budget, suspend further screening of the ministry’s budget, and summon the Ministers of Budget and National Planning and Finance to address the issue.

The committee resolved that adequate funding for the mining sector is critical for Nigeria to fully harness its mineral resources and secure its economic future.