The National Assembly and the Ministry of Solid Minerals Development have called on the Federal Government to make the ministry’s budget a first-line charge.
They warned that inconsistent releases, particularly zero capital funding, are undermining efforts to reposition the mining sector as a key driver of economic diversification.
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’s 2024 and 2025 budget performance and defend its 2026 budget proposal.
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.
Presenting the 2026 estimates, Mr. 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.
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.
He said the remaining amount goes to the various agencies of the ministry.
Mr. Alake described the 2026 proposal as a strategic pivot from “planning and potential” to “execution, production and revenue generation.”
He stressed that the N156.34 billion outlay for the sector represents a critical investment to unlock solid minerals’ capacity to diversify the national economy, create jobs and significantly boost Nigeria’s GDP.
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.
However, the minister lamented that implementation challenges have stifled the ministry’s 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.
“The zero release of the N865.06 billion for capital expenditure in Fiscal Year 2025 is the most critical issue.”
He noted that large-scale infrastructure, exploration and sector development projects announced for the year could not commence.
Funding Setbacks
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.
Mr. 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 bank ability and regulatory compliance.
He said, “We were able to encourage them to form corporations so that they will no longer be labelled illegal miners.
“They will become formalised structures, attract financing and enable the government to demand and receive royalties, taxes and other civic obligations,” he said.
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.
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.
Mr. Alake said Nigeria’s improved geological data acquisition has placed the country on the global mining map, drawing strong investor interest.
He cited the recent African mining conference in Cape Town, South Africa, where Nigeria’s exhibition booth attracted significant attention from global investors.
“The 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,” he said.
Disconnect Between Appropriations and Release
The Joint Committee Chairman, Senator Sampson, acknowledged the ministry’s strides but expressed concern over the disconnect between appropriations and actual releases.
“Zero releases on capital are worrisome. How do you drive the harvest of the sector’s full potential with zero per cent release?” he asked.
He noted that the previous N1 trillion intervention in the sector had raised expectations, but warned that without implementation, “the budget framework is rendered quite unattractive.”
Senator Sampson argued that prioritising the solid minerals sector within the national budget framework would boost investor confidence and signal Nigeria’s seriousness as a mining destination.
“If 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,” he said.
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’s economic future.
“Just like the oil sector, maybe we should try and see if we can make it a first-line charge. Because we can’t just appropriate figures and not pay. How can they develop the mining sector?” one lawmaker said.
Responding, Mr. Alake welcomed the proposal urging lawmakers to consider legislative backing to make it feasible.
“If you legislate on it, it becomes doable. Then we will put on our executive machinery to ensure delivery,” he said.
He stressed that sustained funding is essential for comprehensive geological mapping and data generation, which form the backbone of credible mining investment.
The committee assured the minister that it would examine the proposal, while canvassing stronger prioritisation of the sector in the national budget.
Lawmakers agreed that repositioning solid minerals as a first-line charge would not only guarantee funding stability but also enhance Nigeria’s credibility in the global mining space.
They pledged to work with the executive to develop templates that would ensure the sector delivers “huge harvests” for the country.