The National Assembly has initiated moves to grant the Federal Ministry of Solid Minerals Development first-line charge status following revelations that the ministry recorded zero capital releases for the 2025 fiscal year despite substantial budgetary appropriations.
At a budget defence session in Abuja, members of the Joint National Assembly Committee on Solid Minerals Development expressed concern that although N865.06 billion was earmarked for capital expenditure in 2025, no funds had been disbursed. Lawmakers also noted that only 50 per cent of the ministry’s overhead allocation had been released as of January 31, 2026.
Minister of Solid Minerals Development, Dele Alake, told lawmakers that the absence of capital releases had stalled key infrastructure, exploration and sector development projects. He warned that inconsistent funding threatens efforts to reposition mining as a driver of economic growth, job creation and foreign investment.
Alake advocated for first-line charge status — a funding mechanism that guarantees automatic statutory allocations from the Federation Account — to shield the ministry’s budget from bureaucratic delays and revenue shortfalls.
Chairman of the Joint Committee, Ekong Sampson, described the zero capital release as “worrisome” and inconsistent with the ambitious projections outlined in the national budget. He questioned how the sector could realise its full potential without actual cash backing.
Other lawmakers supported the proposal, arguing that the solid minerals sector should receive similar priority funding protections as the petroleum industry if Nigeria is serious about economic diversification.
Responding, Alake welcomed the proposal and urged the National Assembly to provide legislative backing to formalise the arrangement.
Presenting the ministry’s 2026 budget proposal, the minister disclosed that total allocations for personnel, overhead and capital expenditure across the ministry and its agencies stood at N165.34 billion. Of this, N48.9 billion was proposed for the main ministry, comprising N1.79 billion for personnel costs, N1.57 billion for overhead and N45.54 billion for capital projects.
Alake described the 2026 proposal as a strategic shift from planning to execution and revenue generation, noting that the sectoral allocation is designed to unlock solid minerals’ potential to diversify the economy, create jobs and boost Gross Domestic Product.
He stated that the proposed budget prioritises surveillance, logistics and digital systems to combat illegal mining, improve revenue collection and create a more stable investment climate.
Despite funding challenges, the minister revealed that the ministry exceeded its 2025 revenue target by 80 per cent, generating N30.23 billion as of December 31, 2025. He attributed the performance to reforms that formalised artisanal miners into cooperatives and corporate entities, enhancing regulatory compliance and access to financing.
According to him, 388 mineral buying centres were established during the year, artisanal miners received formal training, and four high-risk abandoned mine sites were reclaimed.
Lawmakers, however, maintained that without predictable and sustained funding, recent gains may be difficult to sustain. They pledged to examine the first-line charge proposal and explore legislative mechanisms to strengthen the sector’s funding framework.
The committee said granting priority funding to the solid minerals sector would not only ensure financial stability but also signal to global investors Nigeria’s commitment to building a competitive and credible mining industry.
