The Challenge of Funding Solid Minerals Development in Nigeria
The Minister of Solid Minerals Development, Dele Alake, has expressed reservations regarding the inadequate N24 billion capital budget assigned to the ministry for the 2024 financial year. He has underscored the imperative need for a substantially larger budget of N250 billion for exploration in order to fulfil the ministry’s objectives in the sector. This disclosure was articulated during his appearance before the House of Representatives Committee on Solid Minerals to substantiate the Ministry’s 2024 budget estimates.
Alake has emphasised the criticality of substantial government funding for exploration, as opposed to relegating it to the private sector. He has posited that reliance on the private sector may result in the withholding of information for personal gain, posing detrimental implications for the country’s economic and security interests. The minister has cited a conservative estimate suggesting that the underground minerals in Nigeria are valued at over $700 billion, indicative of the sector’s immense potential.
In addition to the funding challenge, Alake has addressed the matter of influential Nigerians engaging in illegal mining and sponsoring banditry and acts of terrorism in the country. He has underscored the necessity to identify and redress these influential individuals through both kinetic and non-kinetic strategies. The minister has further implored artisan miners to form cooperatives to enhance their working conditions and livelihoods.
Committee chairman, Honourable Gaza Jonathan Gbefwi, has echoed Alake’s concerns, accentuating the potential of Nigeria’s solid minerals to attract foreign exchange and transform the country. He has lamented the diminishing contribution of the solid minerals sector to the GDP, juxtaposing its past substantial contribution with its current meagre 0.63%.
Gbefwi has underscored the significance of government-led exploration and the ensuing attraction of requisite investments, juxtaposing it with the petroleum sector’s allocation of $400 million for frontier exploration. He has expressed optimism about the administration’s prioritisation of the solid minerals sector and its efforts to attract investments through strategic bilateral and trade expeditions.
The challenges confronting the solid minerals sector in Nigeria are not insurmountable. With the appropriate level of funding and strategic interventions, the sector has the potential to vastly contribute to the nation’s economy and transform the country’s fortunes. It is imperative for the government to prioritise the exploration and development of solid minerals, as this will not only advance economic growth but also address several security concerns associated with the sector. As the dialogue between the Ministry of Solid Minerals and the House of Representatives Committee on Solid Minerals continues, it is essential for all stakeholders to work collaboratively towards identifying sustainable solutions to these challenges.
