NASS, Solid Minerals Ministry seek first-line charge status to safeguard funding
The National Assembly and the Ministry of Solid Minerals Development on Monday urged the federal government to designate the ministry’s budget as a first-line charge to ensure timely and guaranteed
The National Assembly and the Ministry of Solid Minerals Development on Monday urged the federal government to designate the ministry’s budget as a first-line charge to ensure timely and guaranteed releases.
They warned that inconsistent disbursements, particularly the absence of capital funding, are stalling efforts to reposition the mining sector as a central pillar of economic diversification.
The position was canvassed in Abuja when the Minister of Solid Minerals Development, Dr. 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 estimates.
Lawmakers argued that first-line charge status would provide statutory protection for the ministry’s allocations, similar to priority sectors, and shield it from Treasury delays and funding shortfalls.
In his presentation, Alake disclosed that the aggregate personnel, overhead, and capital ceilings for the ministry and its agencies amount to N165.34 billion for the 2026 fiscal year.
For the core ministry, he said N1.79 billion is proposed for personnel costs, N1.57 billion for overhead, and N45.54 billion for capital expenditure, bringing the total to N48.9 billion, with the balance allocated to its agencies.
The minister described the 2026 proposal as a strategic shift from “planning and potential” to “execution, production, and revenue generation.”
He maintained that the N156.34 billion sectoral outlay represents a critical investment aimed at unlocking the solid minerals sector’s capacity to diversify the economy, generate employment, and raise Nigeria’s GDP.
According to him, the allocation prioritises core enablers, including surveillance infrastructure, logistics, and digital systems, to combat illegal mining, enhance revenue collection, and attract 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.
Alake said, “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.
Despite the funding setbacks, he said the ministry surpassed its 2025 revenue target by 80 per cent, generating N30.23 billion as of December 31, 2025.
The Minister attributed the improved revenue profile to reforms in the sector, including the formalisation of artisanal miners into cooperatives and corporate entities to enhance their bankability and regulatory compliance.
“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 disclosed 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.
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.
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.”
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.
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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 to 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, Alake welcomed the proposal, describing it as “sweet music” to his ears and 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.
