The Joint National Assembly Committee on Solid Minerals has rejected the proposed N9 billion capital budget for the mining sector in the 2025 budget, emphasising that the allocation falls drastically short of the investment required to position the sector as the cornerstone of economic diversification.
Leading the debate during the budget defence session on Friday, the Chairman Joint Senate and House of Representatives Committee on Solid Minerals, Senator Ekong Sampson, expressed the committee’s displeasure with the proposed allocation, noting 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.
Speaking in the same vein, the co-chairman and House Committee on Solid Minerals, Hon Gaza Gbefwi, condemned the reduction of the proposed N531 billion 2025 capital expenditure proposal to N9 billion, describing it as disservice to the sector which he argued is crucial for generating revenue beyond oil.
Gbefwi 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 would not forgive us.”
He pointed to countries like Botswana, South Africa and Ghana which are investing heavily in exploration and stressed that with Nigeria’s vast reserves of critical minerals, underfunding the sector would prevent it from becoming a key revenue driver for the nation.
In a statement on Friday by Segun Tomori, special assistant on media to the minister, Dr Dele Alake, the minister 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.
He also noted that the 2024 revenue projection of N11 billion was exceeded 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,” Alake added.
Joining the debate, Senator Natasha Akpoti-Uduaghan emphasised that if Nigeria is serious about developing the mining sector, the 2025 budget proposal must be drastically reviewed upwards.
In a unanimous voice vote, Sen Ekong Sampson announced the committee’s resolution to reject the proposed 2025 budgetary estimates, suspend further screening of the ministry’s budget and invite the ministers of budget and national planning, as well as finance to make a case for an upward review of the sector’s budget allocation to ensure the nation fully maximizes the potential of its mineral resources.
