…..call for urgent reforms to streamline capital budget disbursement
By Fatima Saka
The Senate Committee on Solid Minerals Development has expressed strong concerns over the zero capital budget release for the Nigeria Mining Cadastre Office (NMCO) in 2024.
During a budget defense session on Tuesday, the committee questioned why NMCO had received no capital funding for the entire year and called for urgent measures to address the situation.
NMCO’s Challenges and Revenue Growth
Speaking before the committee, Engr. Obadiah Simon Nkom, Director General of NMCO, outlined the agency’s financial and operational struggles, emphasizing how a lack of capital funding has hindered its ability to function effectively.
“Most of our challenges boil down to funding. Without capital releases, we struggle with basic operational expenses, including electricity bills and maintaining our web-based cadastral system,” Nkom stated.
Despite these constraints, he highlighted the agency’s significant revenue growth over recent years:
2022: ₦4 billion
2023: ₦6 billion
Pre-2022: Around ₦2 billion
“Revenue generation is important, but it is not our only deliverable. The mining cadastre system is central to the growth of the sector, and without adequate funding, we cannot fulfill our mandate effectively,” he added.
Senate Committee Questions Zero Capital Release
Committee Chairman Senator Sampson Ekong expressed frustration over the absence of capital funding, demanding explanations.
“I expected a more detailed explanation as to why no capital funds were released. Was it deemed unnecessary, or was it simply not considered a priority?” Ekong asked.
In response, Nkom explained that bureaucratic bottlenecks in the procurement and payment process were a major obstacle.
“The procedure involves procurement, contract awards, execution, and now an additional layer of uploading documents into the system before payments can be made. This process is beyond our control,” he stated.
“We are optimistic and have been following up persistently. Some senators have even supported us in securing releases for executed projects, particularly constituency projects,” he noted.
Senate Calls for Reduced Bureaucracy
Frustrated by the inefficiencies, the committee called for urgent reforms to streamline capital budget disbursement.
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“If we continue like this, bureaucracy will cripple governance. At this stage in our country’s development, we must reduce unnecessary delays in funding critical projects,” a committee member stated.
Senator Ekong assured NMCO of the legislature’s support in addressing these challenges.
“We are here to assist you. If there are specific measures we can implement to ease the process, let us know. If it is within our powers, we will act immediately,” he concluded.
The committee vowed to advocate for timely capital releases to ensure NMCO can effectively support Nigeria’s solid minerals sector.
