Minister Dele Alake Rejects N9 Billion Mining Budget, Calls for Review
The Minister of Solid Minerals Development, Dr. Dele Alake, has expressed dissatisfaction with the N9 billion capital allocation for the mining sector in the 2025 federal budget. He described the amount as insufficient to unlock the sector’s full potential and called on the National Assembly for a significant upward review.
In a post on his official X account on Saturday, Dr. Alake stated that the proposed budget could hinder the nation’s ability to attract investors and generate critical geo-data.
Job Creation and Revenue Growth
Highlighting the achievements of the mining sector in 2024, Alake noted:
- Jobs Created: Employment in the sector rose to 45,000 jobs, up from 30,000 in the previous year.
- Revenue Exceeded: The sector generated N38 billion, surpassing the N11 billion revenue target.
However, he criticized the reduction of the ministry’s 2025 budget request from N531 billion to N9 billion, calling it “unacceptable.”
National Assembly Committee Weighs In
The Joint National Assembly Committee on Solid Minerals echoed Dr. Alake’s concerns, rejecting the proposed allocation and demanding an upward review.
Statements from Key Lawmakers:
- Senator Ekong Sampson: Emphasized the need for substantial investments in exploration to strengthen the sector’s role in economic diversification.
- Hon. Gaza Gbefwi: Called the reduced budget a “disservice” that undermines efforts to generate revenue beyond oil.
- Senator Natasha Akpoti-Uduaghan: Advocated suspending budget screening until the allocation is revised.
A Halt on Budget Screening
The committee suspended further budget reviews and invited the Ministers of Budget and Finance to address the inadequate allocation. Lawmakers stressed the urgency of increasing the sector’s funding to ensure Nigeria maximizes its mineral resources.
Mining Sector Challenges
Nigeria’s mining sector contributes less than 1% to GDP, despite the country’s vast mineral wealth. Persistent challenges include:
- Insufficient funding.
- Illegal mining activities.
- Low investment levels.
The rejected budget has sparked a call for action to prioritize investments in the sector, aiming to boost its economic impact and create more jobs