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.
The Assembly criticised the allocation, stating that it falls significantly short of the investment needed to establish solid minerals as the cornerstone of Nigeria’s economic diversification efforts.
During the budget defense session on Friday, Senator Ekong Sampson, Chairman of the Joint Senate and House of Representatives Committee on Solid Minerals, expressed dissatisfaction with the proposed allocation.
He emphasised that without substantial investment in exploration and other critical areas, the sector’s potential to drive the transition to green energy would remain untapped.
Echoing this concern, Gaza Gbefwi, Co-chairman and House Committee Chairman on Solid Minerals, condemned the drastic reduction of the proposed N531 billion capital expenditure for 2025 to N9 billion.
He described it as a disservice to the sector, which he argued is pivotal for generating non-oil revenue and ensuring long-term economic sustainability.
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“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 said.
Gbefwi highlighted countries such as Botswana, South Africa, and Ghana, which are making significant investments in exploration, and emphasised that Nigeria’s vast reserves of critical minerals risk being underutilized if the mining sector continues to be underfunded, thereby hindering its potential as a major revenue driver for the nation.
The Minister of Solid Minerals Development, Dele Alake, revealed on his X page the positive outcomes of reforms implemented over the past year, noting that they have increased job creation in the sector to 45,000, compared to 30,000 in the previous year.
He further stated that the revenue projection of N11 billion for 2024 had already been surpassed, with N38 billion generated in the year under review.
“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 N531 billion for capital expenditure but was allocated a mere N9 billion.
“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,” Dr. Alake added.
Additionally, Senator Natasha Akpoti-Uduaghan stressed the need for a significant upward review of the 2025 budget proposal if Nigeria is genuinely committed to developing its mining sector.
She joined others in urging the outright rejection of the proposed budgetary estimates and called for the suspension of the screening process until the necessary revisions are made.
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Following a unanimous voice vote, Sampson announced the committee’s decision to reject the 2025 budgetary estimates, halt further budget screenings for the ministry, and summon the Ministers of Budget and National Planning, alongside Finance, to justify an increased allocation for the mining sector.
This measure, he stated, is critical to unlocking the full potential of the nation’s mineral resources.
