The National Assembly and the Federal Ministry of Solid Minerals Development have called for first-line charge status for the ministry’s annual budget to shield it from funding delays and unlock the sector’s potential.
A first-line charge would guarantee statutory releases similar to priority sectors, insulating the ministry from shortfalls in treasury disbursements. Lawmakers and officials warned that inconsistent releases — including zero capital funding in 2025 — are hampering efforts to reposition mining as a pillar of economic diversification.
The call was made on Monday in Abuja when the Minister of Solid Minerals Development, Dele Alake, appeared before the Joint National Assembly Committee on Solid Minerals Development, chaired by Senator Ekong Sampson, to present the ministry’s 2024 and 2025 budget performance and defend its 2026 proposal.
Alake said the total ceiling for the ministry and its agencies in 2026 stands at N165.34 billion. Of this, the main ministry is allocated N1.79 billion for personnel, N1.57 billion for overhead and N45.54 billion for capital expenditure, totaling N48.9 billion, with the balance going to its agencies.
He described the 2026 proposal as a shift from “planning and potential to execution, production and revenue generation,” adding that the N156.34 billion sectoral outlay is aimed at boosting GDP, creating jobs and strengthening surveillance, logistics and digital systems to curb illegal mining.
However, the minister said implementation has been constrained by poor releases. As of January 31, 2026, only 50 per cent of the 2025 overhead allocation had been disbursed, while capital releases stood at zero. “The zero release of the N865.06 billion for capital expenditure in Fiscal Year 2025 is the most critical issue,” he said, noting that key infrastructure and exploration projects could not commence.
Despite the funding gaps, Alake said the ministry exceeded its 2025 revenue target by 80 per cent, generating N30.23 billion by year-end. He attributed the performance to reforms, including formalising artisanal miners into cooperatives and corporate entities to improve compliance and access to financing.
Sampson acknowledged the revenue gains but questioned the disconnect between appropriations and actual releases. “Zero releases on capital are worrisome. How do you drive the harvest of the sector’s full potential with zero per cent release?” he asked, urging stronger budget prioritisation to boost investor confidence in Nigeria’s mining industry.
