The Federal Ministry of Solid Minerals Development came under the spotlight on Monday as lawmakers urged that the sector be placed on first-line charge to guarantee funding, warning that zero capital releases are undermining Nigeria’s ₦1 trillion mining ambition.
Minister of Solid Minerals Development, Henry Dele Alake, appeared before the National Assembly Joint Committee on Solid Minerals Development to present the Ministry’s 2024 budget performance and outline projections for 2026.
The session, chaired by Senator Ekong Sampson and Hon. Jonathan Gaza Gbefwi, quickly shifted from routine budget review to a broader debate on funding sustainability and sector prioritization.
A key intervention during the session was the call to make the Solid Minerals Ministry a first-line charge—placing it on the same funding priority pedestal as critical national obligations—to shield it from inconsistent treasury releases.
One lawmaker described the mining sector as “very sensitive” and strategic, arguing that without guaranteed funding, Nigeria risks missing out on its vast mineral wealth.
“How can we develop the mining sector with zero capital releases?” the committee queried, describing the situation as worrisome despite the headline ₦1 trillion intervention previously announced for the sector.
The committee noted that while the budgetary framework appeared ambitious, implementation had lagged due to poor releases. Members stressed that without actual cash backing, investor confidence could erode.
Responding, Alake openly endorsed the proposal, describing it as “a sweet song in my ears,” and urged the legislature to take the necessary steps to make it a reality.
He emphasized that achieving the Ministry’s mandate—early and sustainable development of Nigeria’s mineral resources, environmental sanitation, and global competitiveness—requires scientifically certified geological data and sustained funding.
“There is no way we can achieve these lofty goals without internationally certified geological data,” he said, noting that recent geological data acquisition had already boosted Nigeria’s profile among global mining investors.
Despite funding constraints, the Minister highlighted strong performance indicators for 2024. About 81 per cent of the ₦31.24 billion appropriation was released and utilized. Against a ₦11.8 billion revenue target, the Ministry generated over ₦28 billion, representing a 139 per cent increase above projections.
He added that over 350 illegal miners were arrested, with more than 150 prosecuted through strengthened Mine Marshals operations. The Ministry also formalized artisanal miners by organizing them into cooperatives to improve regulation, enhance bankability, and increase royalty and tax collection.
Alake further disclosed that Nigeria’s artisanal mining model is attracting continental attention, with an African minister planning a visit to understudy the framework.
Lawmakers acknowledged the Ministry’s strides in boosting revenue and sanitizing the sector but warned that inconsistent capital releases could undermine investor enthusiasm.
They noted that investors have shown strong interest in Nigeria’s mining potential at international forums, but stressed that funding certainty remains critical to sustaining that momentum.
“There’s a compelling logic that we must prioritize the sector,” the committee chair said, adding that placing solid minerals on first-line charge would enhance investor confidence and signal seriousness of purpose.
With the 2026 budget largely a rollover of 2025 figures, the Minister appealed for clarity on service-wide provisions and urged lawmakers to help secure timely treasury releases.
He warned that without predictable funding, the Ministry’s capacity to expand geological mapping, reclaim abandoned mine sites, and deepen reforms could be constrained.
As deliberations continue, the proposal to elevate the Solid Minerals Ministry to first-line charge status is emerging as a defining policy debate—one that could determine whether Nigeria’s vast mineral wealth becomes a transformative economic pillar or remains largely untapped.