By Fatima Saka
The Senate, on Friday, rejected the 2025 budget proposal of the Ministry of Solid Minerals Development, citing significant discrepancies.
The ministry had proposed N539 billion for capital expenditure, yet the approved envelope was a mere N9 billion, a figure described as grossly inadequate for the sector’s needs.
During a joint session of Senate and House of Rep Committee on Solid Minerals Development, Hon. Jonathan Gbefwi, co-chairman and representative of Nasarawa State, expressed deep concerns. He questioned how the nation could strengthen its foreign exchange reserves and address security challenges, especially those tied to illegal mining in the North and other regions given such inadequate funding.
“How can we curb insecurity linked to illegal mining if the ministry fails to provide investors with the data required for sound investment decisions?” he asked. “By ignoring this, the ministry is essentially allowing illegal mining to persist.”
Senator Diket Plang, representing Plateau Central Senatorial District, suggested that the approved N9 billion allocation might be a typographical error. He speculated the actual figure could be N900 billion, given the magnitude of the ministry’s proposal and its importance to national economic diversification.
Dr. Dele Alake, the Minister of Solid Minerals Development, expressed his frustration over the funding disparity. “This envelope contradicts Nigeria’s economic diversification goals. We proposed N539 billion for capital projects in 2025, but the approved N9 billion is grossly insufficient,” he said.
Dr. Alake also highlighted the ministry’s strong revenue performance, surpassing projections for 2024. “We projected N11 billion in revenue for 2024, but by December, we had generated nearly N38 billion. This demonstrates the potential of this sector if adequately funded,” he noted.
Responding to the motion moved, Senator Sampson Ekong, Chairman of the Senate Committee on Solid Minerals Development, expressed displeasure over the inadequate budget allocation.
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“This budget fails to address the critical needs of the solid minerals sector, a key driver for diversifying Nigeria’s economy,” Senator Ekong stated. “The estimates before us are woefully insufficient to propel the sector’s growth or attract investors. This sector demands a radical upward review of its budget to tackle challenges such as exploration, data gathering, and curbing illegal mining.”
The joint committee emphasized that the peculiarities of the solid minerals sector require bold interventions and adequate funding to unlock its potential. They resolved to suspend further decisions on the ministry’s budget until significant adjustments are made.
In conclusion, Senator Ekong affirmed, “This sector needs substantial investment to overcome the contradictions of abundance amidst poverty. The spirit of this meeting is clear: the budget must be reviewed upwards to reflect the sector’s importance to Nigeria’s economic future.”
