Budget Estimates Deemed Inadequate
The National Assembly joint committee on Solid Minerals has unanimously rejected the budget presented by the Ministry of Solid Minerals for the year 2025, citing significant inadequacies.
Dissatisfaction with Funding Allocation
Following a presentation by Minister Dele Alake, the committee, chaired by Sen. Ekong Sampson, criticized the drastic cut from the ministry’s proposed N539.7 billion for capital expenditure down to just N9 billion allocated.
Motion for Rejection
The rejection was initiated by a motion from Sen. Diket Plang (APC-Plateau), seconded by Sen. Natasha Akpoti-Uduaghan (PDP-Kogi), highlighting the disconnect between the ministry’s economic diversification goals and the budget proposed.
Economic Diversification at Stake
Sen. Sampson emphasized the critical role of the solid minerals sector in diversifying Nigeria’s economy, pointing out that the current budget allocation does not match the sector’s potential or the country’s urgent need to move away from oil dependency.
Call for Revision
The committee insisted on a radical upward review of the budget, stressing the need for substantial investment in exploration, data gathering, and resolving sectoral challenges to leverage Nigeria’s mineral wealth effectively.
Suspension of Budget Screening
In support, co-chairman Mr. Gaza Gbefwi proposed suspending further scrutiny of the budget until a more substantial allocation is considered. He underscored that the budget should serve the interests of Nigerians and national progress.
Minister’s Defense
Minister Alake defended the ministry’s proposal, highlighting the stark contrast between the proposed and allocated funds for 2025. He also noted the ministry’s better-than-expected revenue generation in 2024, despite facing significant budget execution challenges.
Budget Performance Issues
Alake revealed that while overhead costs were fully met in the previous year, only 18% of the capital budget was executed due to insufficient fund releases, indicating a broader systemic issue in budget management.
Appeal for Support
The minister appealed for the committee’s support to rectify the funding anomaly, emphasizing its necessity for achieving the ministry’s objectives in economic diversification and sector growth.
