The Minister of Solid Minerals Development, Dr. Dele Alake, has voiced his discontent over the drastic cut of his ministry’s proposed budget from N531 billion to N9 billion. He characterised this reduction as unacceptable while seeking an increase, though he did not specify the desired amount. Alake has formally protested to the National Assembly, asserting that the current allocation is insufficient to unlock Nigeria’s mining potential and that such limitations would stifle potential investments vital for exploration and growth in the sector. Furthermore, he highlighted that the 2024 revenue projections exceeded expectations, generating N38 billion, thus demonstrating the capacity for growth in the mining sector despite the minimal budgetary support.

The significant reduction of Nigeria’s mining sector budget poses a serious challenge to its economic diversification efforts, as it heavily relies on oil revenue. The proposed cut could undermine ongoing reforms and achievements within the mining industry. Recent figures indicated that reforms helped create 45,000 jobs and exceeded revenue expectations. The government, represented by the Minister and the Joint National Assembly Committee on Solid Minerals, expresses concerns about the implications of such a minimal budget and its impact on future investments and sustainable economic growth.

The drastic cut in the mining sector budget has spurred considerable backlash from the Minister and legislative committees, who argue that it threatens the future potential of Nigeria’s solid minerals industry. With calls for a budget increase, the focus remains on ensuring significant investments for exploration to sustain economic diversification beyond oil reliance. Concerns about job creation and revenue generation continue to be pivotal in discussions surrounding the budget allocation for the mining sector.

Original Source: 21stcenturychronicle.com

The post Minister Decries Cutting Nigeria’s Mining Sector Budget to N9 Billion first appeared on Nigerian Mining News.

Dr. Dele Alake, Nigeria’s Minister of Solid Minerals Development, has expressed strong discontent regarding the drastic reduction of his ministry’s proposed capital budget for 2025 from N531 billion to a mere N9 billion. He articulated his concerns on social media, highlighting that such cuts would severely limit investments necessary for unlocking Nigeria’s mining potential. The minister reported that while mining reforms generated 45,000 new jobs in 2024 and revenue surpassed projections, the current allocation is woefully inadequate for critical exploration activities.

Alake, alongside the Joint National Assembly Committee, emphasised that the N9 billion budget fails to meet the essential financial requirements for fostering significant investment in the mining sector, crucial for Nigeria’s economic diversification. Both Committee Chairman Senator Ekong Sampson and Co-Chairman Gaza Gbefwi joined in condemning the budget reduction as a blow to the country’s capacity to generate revenue. Gbefwi warned against compromising future generations by neglecting such promising sectors as solid minerals.

Senator Natasha Akpoti-Uduaghan suggested halting budget screenings until a proper increase is made. Consequently, the Joint Committee rejected the proposed budget and invited relevant ministers to push for a review that would unlock Nigeria’s mineral resource potential further.

This reflects a broader push for better budgetary support that aligns with the nation’s need for economic diversity beyond oil, framing solid minerals as a cornerstone of this transition.

Dr. Dele Alake stated, “This is unacceptable, as it will hinder any significant investment in exploration… We seek the support of the National Assembly for a radical upward review of the budget.” – 21st Century Chronicle.

The ongoing discussions signal an urgent need for investment in Nigeria’s mining sector to facilitate long-term economic gains and employment opportunities, as well as to increase national revenues.

– Key Points:
1. The proposed capital budget for the mining sector for 2025 is dramatically reduced.
2. Minister Dele Alake and the Joint Committee call for an upward review of the budget.
3. There is a push for increased investment in Nigeria’s mining to drive economic diversification.
4. Critics of the budget cuts see them as detrimental to future generations and growth in the sector.

– Conclusion:
Minister Alake’s dissatisfaction with the N9 billion budget underscores critical gaps in funding necessary for the advancement of Nigeria’s mining infrastructure and workforce development. The rejection by the Joint Committee encapsulates the urgent call for reassessment of priorities to safeguard the future economic health and potential of the nation through solid minerals.

This article discusses the ongoing issues within Nigeria’s mining sector, particularly focusing on a significant budget reduction proposed for 2025. The Minister of Solid Minerals Development, Dr. Dele Alake, has vocalised concerns regarding this cut, seeing it as a hindrance to the potential growth and exploration needed in the industry. The background discusses Nigeria’s reliance on oil, the recent jobs created through mining, and the importance of solid minerals in economic diversification.

The situation highlights the urgent need for increased support and investment in Nigeria’s mining sector. Minister Alake’s statements, alongside the condemnation from the Joint Committee, reflect a clear consensus on the necessity for a budget review to secure the future economic sustainability of the country based on its mineral resources.

Original Source: 21stcenturychronicle.com

The post Minister Rejects Dramatic Cuts to Nigeria’s Mining Budget first appeared on Nigerian Mining News.

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

The post Dele Alake Critiques N9 Billion Mining Budget, Advocates for Increase first appeared on Nigerian Mining News.