By George Mgbeleke <\/p>\n
The National Assembly has asked the Federal government to place solid minerals ministry\u2019s budget on a first-line charge.<\/p>\n
The Parliament warned that inconsistent releases, particularly zero capital funding, are undermining efforts to reposition the mining sector as a key driver of economic diversification.<\/p>\n
The call was made on Monday in Abuja when the Minister of Solid Minerals Development, Mr. Dele Alake, appeared before the Joint National Assembly Committee on Solid Minerals Development, chaired by Senator Ekong Sampson, to present the ministry\u2019s 2024 and 2025 budget performance and defend its 2026 budget proposal.<\/p>\n
A first-line charge status would guarantee statutory releases to the ministry, similar to priority sectors, insulating it from delays and shortfalls in Treasury disbursements.<\/p>\n
Presenting the 2026 estimates, Alake disclosed that the disaggregated personnel, overhead and capital ceilings for the ministry and its agencies stood at N165.34 billion for the 2026 fiscal year.<\/p>\n
For the main ministry, N1.79 billion was proposed for personnel costs; N1.57 billion for overhead; and N45.54 billion for capital expenditure, totalling N48.9 billion.<\/p>\n
He said the remaining amount goes to the various agencies of the ministry.<\/p>\n
Alake described the 2026 proposal as a strategic pivot from \u201cplanning and potential\u201d to \u201cexecution, production and revenue generation.\u201d <\/p>\n
He stressed that the N156.34 billion outlay for the sector represents a critical investment to unlock solid minerals\u2019 capacity to diversify the national economy, create jobs and significantly boost Nigeria\u2019s GDP.<\/p>\n
He said the allocation prioritises foundational tools such as surveillance, logistics and digital systems required to curb illegal mining, increase revenue and create an enabling environment for responsible investment.<\/p>\n
However, the minister lamented that implementation challenges have stifled the ministry\u2019s ambitions saying that as of January 31, 2026, only 50 per cent of the 2025 overhead allocation had been released, while capital releases for 2025 stood at zero.<\/p>\n
Alake said, \u201cThe zero release of the N865.06 billion for capital expenditure in Fiscal Year 2025 is the most critical issue.\u201d<\/p>\n
He noted that large-scale infrastructure, exploration and sector development projects announced for the year could not commence.<\/p>\n
Despite the funding setbacks, he said the ministry surpassed its 2025 revenue target by 80 per cent, generating N30.23 billion as at December 31, 2025.<\/p>\n
Alake attributed the improved revenue profile to reforms in the sector, including the formalisation of artisanal miners into cooperatives and corporate entities to enhance their bankability and regulatory compliance.<\/p>\n
He said, \u201cWe were able to encourage them to form corporations so that they will no longer be labelled illegal miners. <\/p>\n
\u201cThey will become formalised structures, attract financing and enable the government to demand and receive royalties, taxes and other civic obligations,\u201d he said.<\/p>\n
He added that 388 mineral buying centres were established during the year under review, while artisanal miners received training and four high-risk abandoned mine sites were reclaimed.<\/p>\n
The ministry also expanded its enterprise content management system, driving digitisation efforts that earned it recognition as the most digitised ministry in the country in the past year.<\/p>\n
Alake said Nigeria\u2019s improved geological data acquisition has placed the country on the global mining map, drawing strong investor interest.<\/p>\n
He cited the recent African mining conference in Cape Town, South Africa, where Nigeria\u2019s exhibition booth attracted significant attention from global investors.<\/p>\n
\u201cThe acquisition of scientifically certified geological data puts us at par with mining giants globally. The little we have done has placed Nigeria on the map,\u201d he said.<\/p>\n
The Joint Committee Chairman, Senator Sampson, acknowledged the ministry\u2019s strides but expressed concern over the disconnect between appropriations and actual releases.<\/p>\n
\u201cZero releases on capital are worrisome. How do you drive the harvest of the sector\u2019s full potential with zero per cent release?\u201d he asked.<\/p>\n
He noted that the previous N1 trillion intervention in the sector had raised expectations, but warned that without implementation, \u201cthe budget framework is rendered quite unattractive.\u201d<\/p>\n
Sampson argued that prioritising the solid minerals sector within the national budget framework would boost investor confidence and signal Nigeria\u2019s seriousness as a mining destination.<\/p>\n
\u201cIf you invest more, you achieve more. The revenue profile has improved remarkably. It clearly shows that if you had more, you would have achieved much more,\u201d he said.<\/p>\n
Other lawmakers on the committee echoed the call for first-line charge status for the ministry, describing the mining sector as highly sensitive and critical to Nigeria\u2019s economic future.<\/p>\n
\u201cJust like the oil sector, maybe we should try and see if we can make it a first-line charge. Because we can\u2019t just appropriate figures and not pay. How can they develop the mining sector?\u201d one lawmaker said.<\/p>\n
Responding, Alake welcomed the proposal, describing it as \u201csweet music\u201d to his ears and urging lawmakers to consider legislative backing to make it feasible.<\/p>\n
\u201cIf you legislate on it, it becomes doable. Then we will put on our executive machinery to ensure delivery,\u201d he said.<\/p>\n
He stressed that sustained funding is essential for comprehensive geological mapping and data generation, which form the backbone of credible mining investment.<\/p>\n
The committee assured the minister that it would examine the proposal, while canvassing stronger prioritisation of the sector in the national budget.<\/p>\n
Lawmakers agreed that repositioning solid minerals as a first-line charge would not only guarantee funding stability but also enhance Nigeria\u2019s credibility in the global mining space.<\/p>\n
They pledged to work with the executive to develop templates that would ensure the sector delivers \u201chuge harvests\u201d for the country.<\/p>\n","protected":false},"excerpt":{"rendered":"
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