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The Federal Ministry of Solid Minerals Development was granted first-line charge status by the National Assembly on Monday after it was revealed that the sector will receive zero capital releases in 2025. Development MPs characterized this as a significant blow to Nigeria’s economic diversification plan.
Despite massive appropriations, the ministry received no capital disbursement in 2025, and as of January 31, 2026, only 50% of its overhead allocation was released, according to members of the Joint National Assembly Committee on Solid Minerals Development, who voiced their alarm during a budget defense session in Abuja.
Critical infrastructural, exploration, and sector development projects have been put on hold as a result of the 2025 fiscal year’s negative release of N865.06 billion allocated for capital expenditure, Minister of Solid Minerals Development Mr. Dele Alake informed lawmakers.
He cautioned that the solid minerals sector would continue to be stuck by treasury delays and shortfalls if first-line charge status—where statutory amounts are automatically released from the Federation Account like priority sectors—was not used to guarantee funding.
“Inconsistent releases were undermining efforts to reposition mining as a key driver of economic growth, job creation, and foreign investment,” stated Alake.
If Nigeria was serious about releasing the enormous potential of its natural resources, MPs added, first-line charge status would protect the ministry’s budget from bureaucratic obstacles and guarantee consistent payment.
According to Senator Ekong Sampson, the chairman of the Joint Committee, the zero capital release is “worrisome” and essentially contradicts the optimistic expectations included in the national budget.
“How can the sector’s full potential be harvested with a zero percent release?” “What?” asked Sampson.
Although he acknowledged that prior initiatives, such as a N1 trillion sector allocation, had increased industry and investor expectations, he cautioned that “the budget framework is rendered quite unattractive” in the absence of real financial support.
Similar to the petroleum industry, several MPs supported the request for immediate funding structure reform, claiming that solid minerals should be protected from first-line charges.
Perhaps, like the oil industry, we ought to aim to make it a first-line charge. Since we can’t just take numbers and not pay. How can the mining industry grow? One participant inquired.
In response, Alake called the plan “sweet music” and encouraged the National Assembly to support it with legislation to make the arrangement possible.
It becomes feasible if you pass legislation on it. He added, “We will then put on our executive machinery to ensure delivery.”
During the presentation of the ministry’s 2026 budget request, Alake revealed that the ministry and its agencies have capital, overhead, and staff ceilings of N165.34 billion for the fiscal year.
The main ministry’s proposed budget was N48.9 billion, of which N1.79 billion was for personnel costs, N1.57 billion for overhead, and N45.54 billion for capital expenditures. The remaining amount was distributed to various agencies.
A strategy shift from “planning and potential” to “execution, production, and revenue generation” is what he called the 2026 concept.
He claims that the sectors investment of N156.34 billion is an essential one that will unlock solid minerals’ potential to diversify the country’s economy, generate employment, and greatly increase GDP.
In order to prevent illicit mining, enhance revenue collection, and establish a stable environment for responsible investment, the minister stated that the proposed allocation places a high priority on digital systems, logistics, and surveillance.
Alake said that the ministry generated N30.23 billion as of December 31, 2025, 80% more than its 2025 revenue objective despite financial limitations.
According to him, the better revenue performance was a result of measures that formalized artisanal miners into corporations and cooperatives, improving their access to capital and regulatory compliance.
We were able to persuade them to establish corporations in order to remove their status as illegal miners, he stated.
“The government will be able to demand and receive royalties, taxes, and other civic responsibilities thanks to their formalized structures and ability to draw funding.”
“During the year under review, 388 mineral buying centers were established, four high-risk abandoned mine sites were reclaimed, and artisanal miners were trained,” the minister stated.
He also emphasized how the ministry’s enterprise content management system was expanded, which fueled digitization efforts and made it the nation’s most digitized ministry in the previous 12 months.
According to Alake, Nigeria has garnered considerable investor interest as a result of its enhanced geological data collection, which has put the nation on the international mining map.
He brought up the recent African mining conference in Cape Town, South Africa, where foreign investors apparently paid close attention to Nigeria’s show booth.
Obtaining geological data that has been verified by science places us on par with the world’s largest mining companies. Nigeria is on the map because of the little we have done,” he remarked.
However, the lawmakers argued that such advances could be hard to consolidate without consistent and regular support.
In order to improve the sector’s funding structure, they promised the minister that the committee would look into the proposal for first-line charge status and investigate legislative options.
They contend that providing priority funding for solid minerals would ensure financial stability and send a message to international investors that Nigeria is dedicated to developing a respectable and competitive mining sector.
“You can do more if you invest more. The revenue profile is noticeably better now. It’s obvious that you could have accomplished much more if you had more,” Sampson remarked.
Together with the executive, the committee promised to create structures that would guarantee the industry produces what MPs referred to as “huge harvests” for the national economy.
