Solid mineral sector’s grossly inadequate budget allocation

Nigeria is endowed with an abundance of solid minerals, including critical minerals like lithium, nickel and gold, which are in high demand globally. As the President of the Geological Society of Nigeria, I am compelled to express my deep concern over the grossly inadequate allocation to the development of the solid mineral sector in the 2025 budget. The paltry sum of N9 billion, approximately $8 million USD, represents a meagre 1.67 per cent of the total capital expenditure of N539.7 billion.

The current allocation falls woefully short of the investment required to unlock the sector’s potential. Comparatively, other West African countries are allocating significantly more funds to their mining sectors. For instance, Ghana has allocated GHS 2.3 billion (approximately $340 million USD), while Côte d’Ivoire has allocated XOF 233 billion (approximately $390 million USD).

The PBAT administration’s stance on mining is commendable, but it needs to be backed by sufficient funding. The current allocation will not support the ambitious roadmap laid out by the Ministry of Solid Minerals Development, and it will hinder the country’s efforts to diversify its economy away from oil.

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The National Assembly’s Joint Committee on Solid Minerals has also rejected the proposed 2025 budget estimates, describing them as “grossly inadequate”. The committee emphasized the need for a significant upward review to accelerate economic diversification efforts in the sector.

I urge the government to reconsider the allocation to the solid mineral sector and provide more funds to support its development. This will not only generate revenue and create jobs but also position Nigeria as a major player in the global mining industry.

The time for rhetoric is over; it’s time for action. The government must priorities the solid mineral sector and provide the necessary funding to unlock its potential. The future of Nigeria’s economy depends on it.

Uba Saidu Malami is the President, Geological Society of Nigeria