National Assembly Committees Seek Upward Review Of N9 Billion Allocation To Solid Minerals Devt Ministry In 2025 Budget

The National Assembly's joint committee has called for an upward review of the N9 billion allocation to the Ministry of Solid Minerals Development in the 2025 budget proposal, emphasizing the need for increased funding to advance the mining sector in the country. The committee, comprising members from both the Senate and House of Representatives, highlighted a significant discrepancy in the budget proposal, stating that the approved allocation is insufficient compared to the Ministry's projected capital expenditure of N539 billion. 

This disparity raises concerns about the Ministry's ability to effectively develop the solid minerals sector, which is crucial for the country's economic growth and diversification. The committee's demand for a revised budget reflects a commitment to ensuring that the mining sector receives adequate support to fulfill its potential. 

During the recent joint session of the budget defense in the National Assembly, concerns were raised regarding the allocation of N9 billion for the solid minerals sector in 2025. Senator Sampson Ekong, Chairman of the Senate Committee on Solid Minerals Development, criticized the budget as "grossly inadequate," emphasizing that it fails to meet the critical needs of a sector vital for diversifying Nigeria's economy.

Senator Ekong highlighted that the current budget estimates are insufficient to stimulate growth or attract necessary investments. He pointed out that the solid minerals sector faces significant challenges, including the need for exploration, data collection, and efforts to combat illegal mining activities. He argued that substantial investment is essential to address the paradox of Nigeria's rich mineral resources existing alongside widespread poverty.

The senator called for a "radical upward review" of the budget to better reflect the sector's importance to the nation's economic future, underscoring the urgency of addressing these issues to unlock the sector's potential.

Senator Diket Plang's defense of the Executive Arm regarding the N9 billion allocation suggests that there may have been a misunderstanding or miscommunication about the funding amount. If it is indeed a typographical error, it raises questions about the accuracy and transparency of budgetary processes. 

Gbefwi's concerns highlight the critical link between adequate funding, effective governance, and the ability to tackle pressing issues such as insecurity and illegal mining. Without proper data and resources, it becomes challenging for the ministry to attract legitimate investments that could help curb illegal activities and bolster the economy.

The discussion underscores the importance of ensuring that government allocations are not only sufficient but also effectively communicated and utilized to address the multifaceted challenges facing Nigeria, particularly in regions affected by illegal mining and related security issues. It also emphasizes the need for accountability and clarity in the budgeting process to foster investor confidence and promote sustainable development.

The Minister of Solid Minerals Development, Dr. Dele Alake, expressed concerns over the approved budget for the ministry, stating that the allocated N9 billion is significantly inadequate compared to the proposed N539 billion for capital projects in 2025. 

He emphasized that this shortfall contradicts Nigeria's goals for economic diversification, particularly given the ministry's strong revenue performance, which exceeded expectations for 2024. 

The ministry had projected N11 billion in revenue but managed to generate nearly N38 billion by December, highlighting the sector's potential if provided with sufficient funding. Dr. Alake suggested that the actual funding requirement could be as high as N900 billion, reflecting the importance of the ministry's initiatives to the national economy.

The Joint Committees have recognized the unique challenges within the Solid Minerals sector, emphasizing the need for substantial interventions and funding to realize its potential. Consequently, they have decided to halt any further actions on the Ministry's budget until meaningful adjustments are implemented. 

**Key Observations on the Solid Minerals Sector**

- The Joint Committees have identified specific challenges that are unique to the Solid Minerals sector.

- There is a clear call for bold interventions to address these challenges effectively.

- Adequate funding is deemed essential to unlock the sector's full potential.

**Resolution on the Ministry's Budget**

- The Joint Committees have resolved to suspend any further actions regarding the Ministry's budget.

- This suspension will remain in effect until significant adjustments are made to address the identified issues.