By Joy Odor Reportcircle News
Nigeria’s ambitious plan to turn its mineral wealth into a trillion-naira economic pillar has hit a funding wall and lawmakers now want mining placed among the nation’s most protected expenditures.
At a tense budget session in Abuja on Monday, the National Assembly Joint Committee on Solid Minerals Development pushed to grant the sector first-line charge status, warning that erratic treasury releases are quietly sabotaging the country’s diversification agenda.
The debate erupted as Minister of Solid Minerals Development, Henry Dele Alake, presented the ministry’s 2024 performance and projections for 2026 before a committee led by Ekong Sampson and Jonathan Gaza Gbefwi.
What began as routine oversight quickly transformed into a fiscal warning over Nigeria’s post-oil strategy.
Committee members disclosed that despite a headline ₦1 trillion intervention plan for mining, actual capital releases to the ministry have been negligible effectively freezing critical projects.
Lawmakers described the sector as strategic and highly sensitive, cautioning that policy promises without cash backing could erode investor confidence.
“How can we develop the mining sector with zero capital releases?” one member asked, describing the situation as alarming.
They proposed placing the ministry on first-line charge a funding priority typically reserved for sovereign obligations to guarantee predictable financing and signal seriousness to global investors.
Alake openly supported the move.
Calling the proposal “a sweet song,” the minister urged legislators to formalise the funding protection framework, stressing that geological exploration and certification require sustained, uninterrupted financing.
According to him, internationally certified geological data remains the foundation of any globally competitive mining industry.
He added that recent mapping efforts have already improved Nigeria’s profile among foreign mining investors momentum he warned could stall without reliable funding.
Despite capital constraints, the ministry posted strong 2024 performance numbers:
81% of ₦31.24bn budget released and utilised
₦28bn revenue generated vs ₦11.8bn target (139% above projection)
Over 350 illegal miners arrested
More than 150 prosecutions secured
Artisanal miners reorganised into cooperatives to improve taxation and bankability
Officials revealed the formalisation model is attracting interest from other African countries, with a foreign minister planning a study visit.
Lawmakers acknowledged the ministry’s enforcement and revenue gains but warned that inconsistent funding could reverse progress.
They noted investors have shown strong interest in Nigeria’s mineral deposits at international forums, yet capital uncertainty remains the biggest deterrent.
Placing mining on first-line charge, they argued, would:
guarantee continuity of geological mapping
accelerate abandoned mine reclamation
deepen regulatory reforms
strengthen investor confidence
With the 2026 budget largely a rollover of 2025 figures, Alake appealed for clarity on service-wide provisions and predictable releases.
The Committee agreed the issue goes beyond budgeting, it is a test of Nigeria’s economic direction.
