By Musa Ibrahim
The federal government’s drive to diversify its economy through solid minerals suffered a sharp jolt last Monday as lawmakers disclosed that the Federal Ministry of Solid Minerals Development received zero capital release for 2025, despite heavy budgetary appropriations.
The revelation triggered moves in the National Assembly to grant the sector first-line charge status, a mechanism that would guarantee automatic funding from the Federation Account.
At a budget defence session in Abuja, members of the Joint National Assembly Committee on Solid Minerals Development expressed alarm that not a single naira was released for capital expenditure in 2025. As of January 31, 2026, only 50 percent of the ministry’s overhead allocation had been disbursed. Lawmakers described the situation as a major contradiction of Nigeria’s stated ambition to reduce dependence on oil revenues.
Honourable Minister of Solid Minerals Development, Dr. Dele Alake, told the committee that the zero release of the N865.06 billion earmarked for capital projects stalled exploration, infrastructure rollout and sector wide reforms. According to him, inconsistent funding remains the single biggest obstacle to repositioning mining as a driver of growth, jobs and foreign investment.
“This is the most critical issue,” Dr. Alake said. “Inconsistent releases undermine every effort we are making to build the sector.”
To address the problem, the minister urged lawmakers to consider granting the ministry first-line charge status, similar to priority sectors whose allocations are released automatically. He argued that insulating the budget from Treasury delays would provide predictability and restore investor confidence.
Chairman of the Joint Committee, Senator Ekong Sampson, described the zero-capital release as worrisome and inconsistent with the ambitions reflected in the national budget. “How do you drive the harvest of the sector’s full potential with zero per cent release?” he asked, noting that appropriations without cash backing weaken the credibility of government policy.
Other lawmakers echoed the concern, drawing parallels with the petroleum sector. They argued that if solid minerals is expected to anchor diversification, it must enjoy similar funding protection. One lawmaker questioned how the sector could develop when figures are appropriated annually without corresponding disbursements.
Dr. Alake welcomed the proposal, describing it as “sweet music” and urging the legislature to provide the legal backing needed to make it effective. He assured lawmakers that with predictable funding, the executive arm would deliver measurable outcomes.
Presenting the ministry’s 2026 budget proposal, Dr. Alake disclosed that the combined personnel, overhead and capital ceilings for the ministry and its agencies stood at N165.34 billion. For the core ministry, N48.9 billion was proposed, comprising N1.79 billion for personnel, N1.57 billion for overhead and N45.54 billion for capital expenditure, with the balance allocated to agencies.
He described the 2026 budget as a shift from planning to execution. According to him, the N156.34 billion sectoral outlay is designed to unlock solid minerals’ contribution to GDP, job creation and revenue growth. Priority areas include surveillance, logistics and digital systems aimed at curbing illegal mining and improving revenue collection.
Despite funding challenges, the minister disclosed that the sector exceeded its 2025 revenue target by 80 percent, generating N30.23 billion by December 31, 2025. He attributed the performance to reforms that formalised artisanal miners into cooperatives and corporate entities, allowing better regulation and access to finance.
“We encouraged them to form corporations so they are no longer labelled illegal miners,” Dr. Alake said. “That way, government can demand royalties, taxes and other obligations.”
He stated that 388 mineral buying centres were established during the year, artisanal miners were trained, and four high risk abandoned mine sites were reclaimed. Digitisation efforts were expanded through the ministry’s enterprise content management system, earning it recognition as the most digitised ministry in the country last year.
Dr. Alake also pointed to improved geological data acquisition, saying Nigeria is now drawing serious investor interest. At a recent African mining conference in Cape Town, Nigeria’s exhibition reportedly attracted strong attention from international investors.
Lawmakers, however, warned that without predictable funding, such gains may be difficult to sustain. They assured the minister that the committee would examine legislative options to strengthen the sector’s funding framework and consider first-line charge status.
Granting priority funding, they said, would send a strong signal to global investors that Nigeria is serious about building a credible mining industry. As Senator Sampson put it, improved revenue performance already shows what is possible. With consistent funding, lawmakers believe the solid minerals sector could finally deliver the “huge harvests” promised in Nigeria’s diversification plans.
