Investigation Launched into Financial Allocations for Solid Minerals Sector
The decision to initiate an investigation into the Natural Resources Development Fund and the allocation of financial resources to the solid minerals sector in Nigeria from 2013 to 2023 has been made by the House of Representatives. This decision follows allegations of significant underutilization of funds amounting to trillions of naira.
During the presentation of the motion by Hon. Awaji-Inombek Abiante, it was highlighted that the Natural Resources Development Fund, which was established in 2002, aimed to diversify resources and reduce reliance on petroleum. The sources of revenue for this fund include excess crude oil allocation, exchange gains, non-oil revenue, contractual obligations, and refunds. However, it was claimed that despite trillions of naira being deposited into the fund since 2002, the specific allocation for the solid minerals sector remains unclear.
Financial records have revealed misappropriation of fund allocations amounting to N365 billion from 2007 to 2011, while an audit report suggests that the proceeds of the fund were utilized as a borrowing purse by the federal government from 2012 to 2016.
The recent approval and disbursement of a $30 million intervention fund from the Natural Resources Development Fund for the facilitation of exploration operations and the formalization of artisanal miners in the last quarter of 2016 was also brought to light. Additionally, in 2019, funds were directed to the Solid Minerals Development Fund as part of the Presidential Artisanal Gold Mining Development Initiative to formalize and institutionalize the artisanal gold mining industry.
Furthermore, the World Bank-assisted Mineral Sector for Economic Development Project (MINDIVER) provided a $150 million facility to the Nigerian solid mineral sector in 2017. Despite these interventions, it has been disclosed that the contribution of the fund to the solid minerals sector between 2007 and 2020 remains unclear.
An audit report in 2019 revealed that a substantial amount of N903.63 billion allocated to the fund between 2007 to 2011 and 2012 to 2016 was allegedly diverted by the Nigerian government. This has led the House of Representatives to mandate an Ad-hoc Committee to investigate the alleged diversion of N350 billion from the Natural Resources Funds to areas outside its core mandate and to ascertain the status of utilization.
The concerns raised by Hon. Awaji-Inombek Abiante also align with the Nigeria Extractive Industries Transparency Initiative (NEITI) report in 2019, which stated that the federal government continues to exploit the growth of the fund through misappropriation, despite regular inquiries by the National Assembly. Therefore, there is a pressing need to determine the current credit balance of the fund, the proportion of interventions from the fund to the solid minerals sector of the economy, and its utilization status.
This investigation will play a crucial role in ensuring transparency and accountability in the utilization of funds allocated to the solid minerals sector. It demonstrates the commitment of the House of Representatives to upholding good governance and fiscal responsibility. It is essential that financial interventions in this sector are appropriately utilized to drive the growth and development of the Nigerian economy.
The findings of this investigative process will be eagerly awaited by all stakeholders in the solid minerals sector and the general public.
