The Joint National Assembly Committee on Solid Minerals has rejected the proposed N9 billion capital budget for the mining sector in the 2025 budget, saying it is grossly inadequate Henzodaily.ng gathers that the Ministery of Solid Minerals Development estimated N531 billion for capital expenditure but was allocated a mere N9 billionThe committee resolved to suspend budget screenings and invited key ministers to advocate for a substantial upward review to unlock the sector’s full potential
Abuja, FCT – The Joint National Assembly Committee on Solid Minerals has rejected the proposed N9 billion capital budget for the mining sector in the 2025 budget.
A statement sent to Henzodaily.ng on Saturday, January 11, indicates that the committee said that the allocation falls drastically short of the investment required to position solid minerals as the cornerstone of the country’s economic diversification.
The Joint National Assembly Committee on Solid Minerals has rejected the proposed N9 billion capital budget for the mining sector in the 2025 budget.
Photo credit: Segun Tomori
Source: UGC
NASS leaders condemn budget reduction
Leading the debate during the budget defense session on Friday, January 10, Senator Ekong Sampson, chairman of the Joint Senate and House of Representatives Committee on Solid Minerals, expressed the committee’s displeasure with the proposed allocation.
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He noted that without substantial investments in exploration and other critical areas, the potential of solid minerals to drive the transition to green energy would remain unrealised.
The co-chairman and House Committee Chairman on Solid Minerals, Hon. Gaza Gbefwi, also condemned the reduction of the proposed N531 billion 2025 capital expenditure proposal to N9 billion.
He described the drastic reduction as a disservice to the sector, which he argued is crucial for generating revenue beyond oil.
“As a House, we will not allow the future of generations to be compromised because of misplaced priorities,” Gbefwi said.
Solid minerals development minister Alake reacts
In his remarks, the minister of solid minerals development, Dr Dele Alake, highlighted the positive outcomes of the reforms over the past year.
According to the minister, the reforms have created 45,000 new jobs in the sector, up from 30,000 the previous year.
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He also noted that the 2024 revenue projection of N11 billion had been exceeded, with N38 billion generated in the year under review.
“We have not only succeeded in attracting global attention to Nigeria’s mining sector, but we have also seen an increase in revenue, despite receiving only 18% of our 2024 capital budget.
“In our budget proposals for 2025, we estimated over N531 billion for capital expenditure but was allocated a mere N9 billion. This is unacceptable, as it will hinder any significant investment in exploration, which is crucial for generating the geo-data that will attract major players. We seek the support of the National Assembly for a radical upward review of the budget,” Alake was quoted in the statement released by his media aide, Segun Tomori.
Mining sector budget must be reviewed, Akpoti-Uduaghan says
Joining the debate, Senator Natasha Akpoti-Uduaghan stressed that if Nigeria is serious about developing the mining sector, the 2025 budget proposal must be drastically reviewed upwards.
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She added her voice to the call for the rejection of the proposed budgetary estimates and a suspension of the screening process until the review is implemented.
In a unanimous voice vote, Sen. Ekong Sampson, Chairman of the Joint Committee, announced the committee’s resolution to reject the proposed 2025 budgetary estimates, suspend further screening of the ministry’s budget, and invite the Ministers of Budget and National Planning, as well as Finance, to make a case for an upward review of the mining sector’s budget allocation to ensure the nation fully maximizes the potential of its mineral resources.
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Source: Henzodaily.ng