By Jemimah Wellington, JKNewsMedia Reporter
NIGERIA’s PUSH for economic diversification risks stalling as the Joint National Assembly Committee on Solid Minerals rejects the proposed N9 billion capital budgets for the mining sector in the 2025 appropriation.
Lawmakers argue that the allocation is grossly insufficient to unlock the potential of solid minerals as a key revenue driver and enabler of the nation’s transition to green energy.
During the budget defence session on Friday, Senator Ekong Sampson, Chairman of the Joint Senate and House of Representatives Committee on Solid Minerals, criticised the drastic reduction from the initial N531 billion proposals.
He warned that neglecting critical investment in exploration and geo-data generation would leave Nigeria unable to harness its vast mineral resources.
His counterpart, Hon. Gaza Gbefwi, Co-chairman and Chairman of the House Committee on Solid Minerals, described the allocation as a failure to prioritise a sector crucial to reducing dependence on oil. “We will not stand by while future generations are shortchanged. Solid minerals hold immense promise for diversifying our economy, and this funding cut is unacceptable,” Gbefwi said. He cited Botswana, Ghana, and South Africa as examples of countries benefitting from substantial investments in exploration.
The Minister of Solid Minerals Development, Dr. Dele Alake, outlined achievements under ongoing reforms, including the creation of 45,000 jobs and surpassing the 2024 revenue projection of N11 billion with N38 billion generated.
However, he expressed frustration that the sector, despite its progress, received only 18% of its 2024 capital budget. “Our 2025 capital expenditure proposal was N531 billion, but we were allocated only N9 billion.
This will cripple exploration efforts, which are essential for attracting global investors. We need the National Assembly’s support for a substantial upward review,” Dr. Alake said.
Senator Natasha Akpoti-Uduaghan added her voice to the debate, urging a significant review of the budget to reflect the sector’s strategic importance.
She called for the suspension of the budget screening process until adequate allocations are ensured.
Following a unanimous voice vote, the Joint Committee resolved to reject the 2025 budgetary estimates for the mining sector, suspend further screening, and summon the Ministers of Budget and National Planning and Finance for discussions on revising the allocation.
This decision, announced in a statement signed by Segun Tomori, Special Assistant on Media to the Honourable Minister of Solid Minerals Development, is noted to reflect a shared commitment among lawmakers to prioritise the sector as a cornerstone of economic growth.
