Dele Alake faults N9 billion allocated for Nigeria’s mining sector in 2025 budget, seeks upward review

This was disclosed via his X page on Saturday.

Alake revealed that he had submitted to the National Assembly (NASS) that the allocation was grossly “unacceptable” and inadequate to unlock Nigeria’s mining potential for the nation’s economic benefit.

According to Dr Dele Alake, reforms in the mining sector in 2024 created 45,000 new jobs, up from 30,000 the previous year.

He urged lawmakers to ensure that the sector’s projects are not negatively affected by inadequate budgetary allocation.

“We have not only succeeded in attracting global attention to Nigeria’s mining sector, but we have also seen an increase in revenue, despite receiving only 18% of our 2024 capital budget.   

 “In our budget proposals for 2025, we estimated over N531bn for capital expenditure but were allocated a mere N9bn. This is unacceptable, as it will hinder any significant investment in exploration, which is crucial for generating the geo-data that will attract major players. We seek the support of the National Assembly for a radical upward review of the budget,” Alake stated.

On Friday, the Joint National Assembly Committee on Solid Minerals rejected the proposed N9 billion capital budget for the mining sector in the 2025 budget.

“As a House, we will not allow the future of generations to be compromised because of misplaced priorities. We, as elected representatives, understand the urgent need to diversify our economy, and no sector holds more promise in this regard than solid minerals. If we miss this opportunity to invest today, future generations will not forgive us,” Gbefwi stated.

Senator Natasha Akpoti-Uduaghan called for the suspension of the screening process until an upward review is implemented.

Following a unanimous voice vote, the committee resolved to reject the proposed 2025 budgetary estimates.

While Nigeria stands as Africa’s leading energy producer, it has struggled to maximise its extensive mineral resources due to insufficient incentives, illegal activities, low investment opportunities, and neglect.

The nation’s underdeveloped mining sector contributes less than 1% to its gross domestic product.