Senate, Reps reject 2025 mining budget as Alake criticizes proposal

At the budget defense session on Friday, the joint Senate and House of Representatives Committee on Solid Minerals Development rejected the 2025 budgetary proposals presented by the Ministry of Solid Minerals Development.

The committee, chaired by Senator Ekong Sampson, expressed concerns over the feasibility and potential impact of the projects outlined in the budget.

Similarly, the House Committee on Solid Minerals Development, led by Hon. Jonathan Gaza, raised critical questions about the ministry’s proposed expenditures and their alignment with national priorities.

Minister of Solid Minerals Development, Dr. Dele Alake, defended the budget by outlining the ministry’s strategic objectives and their anticipated contributions to the economy.

He explained: “The Ministry proposed a capital budget of ₦539 billion, with ₦500 billion allocated to exploration. Without exploration, you can’t generate data, and without internationally certified data, investors will not be encouraged.

“They need to know the type, quantity, and depth of minerals available before making investment decisions. Exploration is an expensive venture.”

Dr. Alake expressed disappointment with the funding allocated to the ministry, adding, “Unfortunately, in contrast to the objectives of diversifying Nigeria’s economy away from oil and into green energy and solid minerals development, the ministry received an envelope of just ₦9 billion, a far cry from our proposed ₦539 billion.”

He stressed the need for increased investment in the sector to boost revenue and create employment opportunities.

However, the committee remained unconvinced. Senator Diket Plang, representing Plateau Central, moved the motion to reject the budget, emphasizing the importance of strategic planning in sectors vital to Nigeria’s economic diversification and growth, such as solid minerals.

Despite Dr. Alake’s explanations, the committee insisted that the proposed budget lacked clarity, actionable timelines, and measurable deliverables.

Lawmakers noted the need for a more detailed plan that addresses the sector’s challenges and ensures optimal use of allocated resources.

The committee directed the ministry to revise and resubmit the budget with a clearer strategy, including detailed project plans, timelines, and projected impacts, to justify the proposed allocation.