National Assembly slashes Ministry of Solid Minerals Budget despite previous promises
The National Assembly has made a significant reduction in the budget allocation to the Ministry of Solid Minerals Development by 25.09 percent to N21,906,773,234. This decision came as a surprise after the House of Representatives had pledged to increase the allocation for the ministry for the 2024 fiscal year.
The 2024 appropriation bill, which was passed on Saturday, saw the chambers cutting the ministry’s budget despite earlier promises. The overall budget size was increased from the proposed N27.5 trillion by President Bola Tinubu to N28.7 trillion. However, the specific allocation to the ministry of solid minerals was reduced from N29,243,373,419 to N21,906,773,234.
During the Ministry’s budget defence session on December 12, 2023, Jonathan Gbefwi, the Chairman of the House Committee on Solid Minerals and Development, expressed the importance of Nigeria’s solid minerals in boosting the country’s economy. He noted that in the 70s, the solid minerals sector contributed over 50 percent to the GDP, whereas today it only contributes a meagre 0.65 percent. Despite President Bola Tinubu’s emphasis on the priority placed on the solid minerals sector, Gbefwi expressed his disappointment with the budgetary estimates for 2024, stating that the allocated budget is insufficient to make a significant impact in the mining sector.
This decision to reduce the budget allocation to an important sector like solid minerals raises questions about the government’s commitment to the development of the industry. The promised increase in budget allocation from the House of Representatives did not materialize, leading to concerns about the future of the mining sector and its potential to contribute to the country’s economy.
It is crucial for the government to consider the long-term benefits of investing in the solid minerals sector and to ensure that the allocated budget is sufficient to support its growth and development. The reduction in the ministry’s budget does not align with the goals of revitalising the mining sector and harnessing its full potential.
As Nigeria aims to diversify its economy and reduce its dependency on oil, the solid minerals sector presents a viable opportunity for growth and development. It is essential for the government and the National Assembly to work together to ensure that the budget allocation reflects the importance of the sector and supports its revival.
The decision to cut the budget of the Ministry of Solid Minerals has raised concerns about the government’s commitment to developing the sector and its potential impact on the country’s economy. It is imperative for the government to re-evaluate the allocation and consider the long-term benefits of investing in the solid minerals sector for the overall growth and development of Nigeria’s economy.
