N’ Assembly Seeks First-Line Charge for Solid Minerals As Capital Releases Hit Zero

* Lawmakers warn inconsistent funding cripples mining diversification drive

Sunday Aborisade in Abuja 

The National Assembly on Monday moved to grant the Federal Ministry of Solid Minerals Development first-line charge status after it emerged that capital releases to the sector for 2025 stood at zero, a development lawmakers described as a major setback to Nigeria’s economic diversification agenda.

At a budget defence session in Abuja, members of the Joint National Assembly Committee on Solid Minerals Development expressed alarm that despite huge appropriations, the ministry received no capital disbursement in 2025, with only 50 per cent of its overhead allocation released as of January 31, 2026.

Minister of Solid Minerals Development, Mr. Dele Alake, told lawmakers that the zero release of N865.06 billion earmarked for capital expenditure in the 2025 fiscal year had stalled critical infrastructure, exploration and sector development projects.

He warned that without guaranteed funding through first-line charge status, where statutory allocations are automatically released from the Federation Account like priority sectors, the solid minerals sector would remain hamstrung by treasury delays and shortfalls.

Alake said: “This is the most critical issue because inconsistent releases were undermining efforts to reposition mining as a key driver of economic growth, job creation and foreign investment.

First-line charge status would insulate the ministry’s budget from bureaucratic bottlenecks and ensure predictable funding, a move lawmakers said was necessary if Nigeria was serious about unlocking the vast potential of its mineral resources.

Chairman of the Joint Committee, Senator Ekong Sampson, described the zero capital release as “worrisome” and fundamentally at odds with the ambitious projections embedded in the national budget.

“How do you drive the harvest of the sector’s full potential with zero per cent release?” Sampson queried.

He noted that previous interventions, including a N1 trillion allocation to the sector, had raised expectations within the industry and among investors, but warned that without actual cash backing, “the budget framework is rendered quite unattractive”.

Other lawmakers echoed the call for urgent reform of the funding structure, arguing that solid minerals, like the petroleum sector, should enjoy first-line charge protection.

“Just like the oil sector, maybe we should try and see if we can make it a first-line charge. Because we can’t just appropriate figures and not pay. How can they develop the mining sector?” One member asked.

Responding, Alake welcomed the proposal, describing it as “sweet music” and urged the National Assembly to provide legislative backing to make the arrangement feasible.

“If you legislate on it, it becomes doable. Then we will put on our executive machinery to ensure delivery,” he said.

Presenting the ministry’s 2026 budget proposal, Alake disclosed that the personnel, overhead and capital ceilings for the ministry and its agencies stood at N165.34 billion for the fiscal year.

For the main ministry, N1.79 billion was proposed for personnel costs, N1.57 billion for overhead and N45.54 billion for capital expenditure, totalling N48.9 billion, with the balance allocated to its agencies.

He described the 2026 proposal as a strategic pivot from “planning and potential” to “execution, production and revenue generation”.

According to him, the N156.34 billion sectoral outlay represents a critical investment designed to unlock solid minerals’ capacity to diversify the national economy, create jobs and significantly boost Gross Domestic Product (GDP).

The minister said the proposed allocation prioritises surveillance, logistics and digital systems aimed at curbing illegal mining, improving revenue collection and creating a stable environment for responsible investment.

Despite funding constraints, Alake disclosed that the ministry exceeded its 2025 revenue target by 80 per cent, generating N30.23 billion as at December 31, 2025.

He attributed the improved revenue performance to reforms that formalised artisanal miners into cooperatives and corporate entities, enhancing their access to financing and regulatory compliance.

He said: “We were able to encourage them to form corporations so that they will no longer be labelled illegal miners.

“They will become formalised structures, attract financing and enable the government to demand and receive royalties, taxes and other civic obligations.”

The minister added that 388 mineral buying centres were established during the year under review, while artisanal miners received training and four high-risk abandoned mine sites were reclaimed.

He also highlighted the expansion of the ministry’s enterprise content management system, which drove digitisation efforts and earned it recognition as the most digitised ministry in the country in the past year.

Alake said Nigeria’s improved geological data acquisition had placed the country on the global mining map, attracting significant investor interest.

He cited the recent African mining conference in Cape Town, South Africa, where Nigeria’s exhibition booth reportedly drew strong attention from international investors.

“The acquisition of scientifically certified geological data puts us at par with mining giants globally. The little we have done has placed Nigeria on the map,” he said.

The lawmakers, however, maintained that without predictable and sustained funding, such gains could prove difficult to consolidate.

They assured the minister that the committee would examine the proposal for first-line charge status and explore legislative mechanisms to strengthen the sector’s funding architecture.

According to them, granting solid minerals priority funding would not only guarantee financial stability but also signal to global investors that Nigeria is committed to building a credible and competitive mining industry.

“If you invest more, you achieve more. The revenue profile has improved remarkably. It clearly shows that if you had more, you would have achieved much more,” Sampson said.

The committee pledged to work with the executive to develop frameworks that would ensure the sector delivers what lawmakers described as “huge harvests” for the country’s economy.