Revitalising Nigeria’s Mining Sector Through Adequate Funding

The House of Representatives Committee on Solid Minerals Development has underscored the significance of substantial budget allocations to the Ministry of Solid Minerals Development for the upcoming fiscal year. This move is crucial in enhancing the sector’s role in diversifying the economy and tapping into the potential of Nigeria’s solid minerals.

During the budget defence session of the Ministry of Solid Minerals Development, Hon. Jonathan Gbefwi, the chairman of the House Committee on Solid Minerals, highlighted the immense potential of Nigeria’s solid minerals to attract foreign exchange, drive economic growth, and contribute significantly to the gross domestic product (GDP). He pointed out the sector’s past contributions to the GDP in the ’70s, which exceeded 50 per cent. However, there has been a significant decline, with the current contribution standing at a mere 0.65 per cent. Nevertheless, the committee is encouraged by President Bola Tinubu’s dedication to revitalising the sector and commended the ministry’s efforts in seeking strategic partnerships to attract investments.

However, Gbefwi expressed disappointment with the 2024 budgetary estimates for the ministry, deeming the allocation grossly inadequate to make a meaningful impact in such a critical sector. In response, he pledged the House of Representatives’ commitment to significantly increase budgetary allocations to the mining sector and collaborate with the executive to implement necessary reforms through legislative frameworks.

In his presentation, the Minister of Solid Minerals Development, Dr. Dele Alake, reiterated the federal government’s commitment to diversify the economy through the development of solid minerals. He highlighted the discovery of at least 44 economically viable minerals and stressed the urgency of sanitising the sector and creating an enabling environment for mining operations. Alake also emphasised the need for collaboration between the executive and legislative branches to steer the country out of its economic challenges.

The concerns of insecurity in the mining environment were also addressed, with ongoing efforts to establish a new security architecture infused with advanced technology in collaboration with the Ministry of Defence.

The Minister’s special assistant on media, Segun Tomori, expressed gratitude for the committee’s commitment and emphasised the positive impact increased budgetary allocations would have on exploration efforts, generating crucial geo-data on mineral resources, attracting major players, and ultimately contributing to government revenue and economic development. This collaboration is seen as a crucial step towards tapping into the untapped potential of Nigeria’s solid minerals sector.

The drive for substantial funding for the revitalisation of Nigeria’s mining sector is a critical step in driving economic growth and diversifying the nation’s economy. With the collaborative efforts of both the executive and legislative branches, there is hope for a resurgence in the solid minerals sector, ultimately leading to increased revenue and economic development.