*The Nigerian National Assembly Joint Committee on Solid Minerals unanimously rejects the N9 billion proposed capital budget for the mining sector in the 2025 Budget, seeking an upward review of the Ministry鈥檚 budget estimates

Isola Moses | 绿帽献妻

The Nigerian National Assembly (NASS) Joint Committee on Solid Minerals has rejected the proposed N9 billion capital budget for the mining sector in the 2025 budget.

The NASS Joint Committee emphasised that the budgetary allocation to the Ministry falls drastically short of the investment required to position the solid minerals industry as the cornerstone of economic diversification in the country.

Leading the debate during the budget defence session Friday, January 10, 2025, Sen. Ekong Sampson, Chairman of the Senate and House of Representatives Joint Committee on Solid Minerals, expressed the Committee’s displeasure with the proposed allocation.

Sampson noted that without substantial investments in exploration and other critical areas, the potential of solid minerals to drive the transition to green energy would remain unrealised in Nigeria.

Toeing the Committee Chairman’s line of submission, Hon. Gaza Gbefwi, Co-chairman and House Committee Chairman on Solid Minerals, also condemned the reduction of the proposed N531 billion 2025 capital expenditure proposal to N9 billion.

Hon. Gbefwi described the action as a disservice to the sector, which he argued is crucial for generating revenue for the Nigerian Government beyond oil.

Mr. Segun Tomori, Special Assistant to the Minister for Solid Minerals Development on Media, stated the Chairman House Committee on Solid Minerals, said: “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 further mentioned countries, such as Botswana, South Africa and Ghana, which are investing heavily in explorations.

He stressed that with Nigeria’s vast reserves of critical minerals, underfunding the mining sector would prevent it from becoming a key revenue driver for the nation.

Alake: We seek NASS support for upward review of mining budget

Speaking at the budget defence session, Dr. Oladele Alake, Honourable Minister for Solid Minerals Development, highlighted the positive outcomes of the reforms over the past year, which have created 45,000 new jobs in the sector, up from 30,000 the previous year.

Dr. Alake noted that the 2024 revenue projection of N11 billion had been exceeded, with N38 billion generated in the year under review.

The Minister also told the Federal legislators: “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.”

He equally said: “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.”

Joining the debate, Senator Natasha Akpoti-Uduaghan emphasised that if Nigeria is serious about developing the mining sector of the economy, the Ministry’s 2025 Budget proposal must be drastically reviewed upwards.

Senator Akpoti-Uduaghan also called for the rejection of the N9 billion proposed budgetary estimates, and suspension of the screening process until the review is implemented.

The statement disclosed that Sen. Sampson, Chairman of the Joint Committee, in a unanimous voice vote, announced the Committee’s resolution to reject the 2025 budgetary estimates, suspend further screening of the Ministry’s budget, and invite the Ministers for Budget and National Planning, as well as Finance, to make a case for an upward review of the mining sector’s budget allocation to ensure Nigeria fully maximises the potential of its mineral resources.

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