Dr. Dele Alake criticises the N9 billion allocated for Nigeria’s mining sector in the 2025 budget, calling for an upward review. He cites previous successes in job creation and revenue generation from the sector but warns that the current budget will hinder future investments in exploration, crucial for unlocking Nigeria’s mining potential. The Joint National Assembly Committee supports his concerns, rejecting the proposed budget, which is seen as insufficient for the country’s economic diversification.
The Minister of Solid Minerals Development, Dr. Dele Alake, has expressed strong disapproval of the N9 billion budget allocated for Nigeria’s mining sector in 2025, calling for a significant increase. In a post on X, Alake argued that this financial allocation is insufficient to harness the country’s mining potential, despite the sector generating N38 billion in revenue in 2024, exceeding an initial projection of N11 billion. He emphasised that to secure substantial investments in exploration activities, an upward review of the budget is essential.
Alake pointed out the success of mining reforms in 2024, which resulted in 45,000 new jobs and enabled Nigeria to attract global attention in the sector. He asserted that the N9 billion budget would severely limit exploration efforts and hinder necessary geo-data generation to engage major investors. Furthermore, the Joint National Assembly Committee on Solid Minerals has also rejected the proposed budget, advocating for increased funding to promote solid minerals as a critical component of economic diversification. Committee Chair Senator Ekong Sampson highlighted the crucial need for investment in exploration to facilitate Nigeria’s green energy transition.
Nigeria is Africa’s leading energy producer but struggles to leverage its mineral resources effectively, contributing less than 1% to its GDP. Persistent challenges include inadequate incentives, rampant illegal activities, and low investment levels. The country aims to diversify its economy and harness the potential of its solid minerals sector, which is viewed as key for future economic stability and growth. Recent reforms demonstrated the possibility of job creation and revenue generation, but the budgetary allocation needs considerable enhancement to facilitate further progress.
In summary, Dr. Dele Alake’s call for an increased budget for Nigeria’s mining sector underscores the necessity of substantial investment for exploration and growth. With the Joint National Assembly Committee echoing his concerns, there is a growing consensus on the urgent need for policy adjustments to ensure Nigeria capitalises on its mineral wealth and drives economic diversification away from oil dependency. Without adequate funding, opportunities for future generations may be severely compromised.
Original Source: nairametrics.com