Revamping Nigeria’s Mining Sector: House of Representatives Pledges to Increase Budget Allocation
The House of Representatives has committed to increasing the budget allocation for the Ministry of Solid Minerals Development for the 2024 fiscal year. The aim of this increase is to strengthen the role of the mining sector in diversifying the economy.
During the budget defense session of the ministry, Jonathan Gbefwi, chairman of the House Committee on Solid Minerals and Development, highlighted Nigeria’s abundant solid mineral resources and emphasized the potential of the sector to attract foreign exchange and significantly contribute to the country’s GDP.
Gbefwi expressed concern about the current level of contribution of the solid minerals sector to the GDP. He pointed out that in the 1970s, it accounted for over 50 percent of GDP, whereas today it only contributes a mere 0.65 percent. However, he expressed optimism about the sector’s potential, especially in light of the government’s renewed focus.
Nonetheless, Gbefwi mentioned his disappointment with the inadequacy of the 2024 budget estimates for the ministry, which he believes would not have a significant impact on the sector. As a result, he assured that the House of Representatives is committed to not only increasing budget allocations to the mining sector but also working with the executive to implement reforms through the appropriate legislative framework.
Meanwhile, Dele Alake, Minister of Solid Minerals Development, reiterated the government’s commitment to diversifying the nation’s economy through solid minerals. He emphasized the discovery of at least 44 economically viable minerals and stressed the importance of creating an enabling environment for mining operations.
Alake acknowledged that Nigeria had previously focused on oil at the expense of solid minerals but highlighted that the country is now at a pivotal moment in history. He emphasized the need for collaboration between the executive and legislature to lead the country out of its economic challenges.
In an effort to improve the mining environment, Alake revealed that issues of insecurity are being addressed through inter-agency collaborations and the infusion of technology to create a new security architecture.
Alake also expressed gratitude to the House Committee for their commitment to partnering with the ministry in increasing the budget allocations for the 2024 fiscal year. He stressed that this support would enhance the government’s capacity to invest in exploration, leading to the generation of substantial mineral resource data and attracting major players, which would in turn translate to substantial revenue for the government and economic development.
