Alake decries capital budget cut in mining sector
• Says revenue hit N38b in 2024
• HEDA calls for transparency on subsidy funds, budget performance
The Minister of Solid Minerals Development, Dr Dele Alake, has said the reduction of his ministry’s proposed capital budget from N531 billion to N9 billion is unacceptable.
The minister, who stated this on his X page at the weekend, has demanded for increase but didn’t state how much he needed. Alake said he had protested to the National Assembly that the allocation was grossly unacceptable and inadequate to unlock Nigeria’s mining potential for the nation’s economic benefit, adding that reforms in the mining sector in 2024 created 45,000 new jobs, up from 30,000 the previous year.
According to the minister, the 2024 revenue projection of N11 billion was surpassed, with N38 billion generated in the year under review. He said the current allocation would hinder significant investment in exploration activities, asking the lawmakers to ensure that the sector’s projects are not negatively affected by inadequate budgetary allocation.
Alake said: “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 per cent of our 2024 capital budget.
“In our budget proposals for 2025, we estimated over N531 billion for capital expenditure but were 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.”
The Joint National Assembly Committee on Solid Minerals rejected the proposed N9 billion capital budget for the mining sector in the 2025 budget. The committee emphasised that the allocation falls drastically short of the investment required to position solid minerals as a cornerstone of economic diversification.
The Chairman of the Joint Senate and House of Representatives Committee on Solid Minerals, Ekong Sampson, noted that substantial investments in exploration and other critical areas are needed to tap into the potential of solid minerals and drive the transition to the green energy revolution.
The Co-Chairman and House Committee Chairman on Solid Minerals, Gaza Gbefwi, also criticised the reduction of the 2025 capital expenditure proposal for the mining sector.
MEANWHILE, the Human and Environmental Development Agenda (HEDA Resource Centre) has urged the Nigeria Senate Committee on Appropriation, chaired by Solomon Olamilekan, to prioritise transparency and accountability in the recent Senate hearing involving the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun.
HEDA’s Chairman, Olanrewaju Suraju, expressed concerns over key financial issues raised by the Senate committee, such as savings and expenditures from the removal of the fuel subsidy and debt servicing, urging the Senate to ensure comprehensive investigations, making the findings publicly accessible.
According to Suraju, the Nigerian public has the right to know how their resources are being managed, particularly during economic challenges. He further emphasised the need for the minister to provide detailed accounts of savings and expenditures from subsidy removal to the Parliament, clearly outlining debt servicing costs for 2024, and providing projections for 2025.
The civil society organisation also expressed disappointment in the apparent lack of readiness displayed by some public officials during the public hearing, and their sudden demand for closed door session with the parliamentary committee, stating that it undermines public trust in governance.
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