NASS Committee Rejects N9bn Mining Budget, Demands Higher Allocation For 2025

The Joint National Assembly Committee on Solid Minerals has firmly rejected the proposed N9 billion capital allocation for the mining sector in the 2025 budget. Lawmakers argue that the figure is grossly inadequate to transform solid minerals into a pillar of economic diversification.

During the budget defense on Friday, the Chairman of the Joint Senate and House Committee on Solid Minerals, Senator Ekong Sampson, criticized the proposed amount, stressing that substantial investment in exploration is necessary for the sector to contribute significantly to the nation’s shift towards green energy.

Echoing these concerns, Hon. Gaza Gbefwi, Co-chairman and House Committee Chairman on Solid Minerals, condemned the drastic reduction from the initially proposed N531 billion to N9 billion. He described this as a serious setback for the sector, which holds immense potential to generate non-oil revenue.

Hon. Gbefwi emphasized the importance of solid minerals in Nigeria’s economic diversification, urging for increased investment to avoid compromising future generations’ prospects. Citing nations like Botswana, South Africa, and Ghana, he noted how strategic investments in exploration have transformed their mining sectors.

Minister of Solid Minerals Development, Dr. Dele Alake, presented progress from recent reforms, highlighting the creation of 45,000 jobs in the last year, up from 30,000 previously. He also announced that the 2024 revenue target of N11 billion had been significantly exceeded, reaching N38 billion despite receiving only 18% of the year’s capital budget.

Dr. Alake further criticized the proposed N9 billion budget, emphasizing its inadequacy to fund critical exploration projects needed to attract major global investors. He called for legislative backing to increase the budget significantly for 2025 to unlock the sector’s full potential.

Senator Natasha Akpoti-Uduaghan supported the call for a budget review, urging the suspension of the budget screening process until the proposed allocation is substantially revised.

In a unanimous decision, the committee resolved to reject the proposed budget, halt further screenings, and invite the Ministers of Budget, National Planning, and Finance to justify the need for a higher allocation to fully leverage Nigeria’s mineral resources.