Mining Sector Funding: NASS Urges First-Line Charge
Nigeria’s National Assembly and the Ministry of Solid Minerals Development are strongly advocating for the federal government to grant the ministry a first-line charge status, a move designed to ensure consistent and predictable funding for the vital mining sector.
This crucial appeal was made on Monday in Abuja during an appearance by the Minister of Solid Minerals Development, Dele Alake, before the Joint National Assembly Committee on Solid Minerals Development, which is chaired by Ekong Sampson.
During the session, Minister Alake presented a detailed overview of the ministry’s 2024 and 2025 budget performance and subsequently defended its budget proposal for 2026.
Ensuring Stable Funding for Growth
Lawmakers on the committee emphasised that conferring first-line charge status upon the Ministry of Solid Minerals Development, akin to other priority sectors, would guarantee statutory budget releases. This mechanism would effectively shield the ministry from debilitating delays and shortfalls in Treasury disbursements, which have historically hampered its operations.
They issued a stern warning that inconsistent funding, particularly the instances of zero capital releases, is severely undermining national efforts to reposition mining as a core pillar of Nigeria’s economic diversification strategy. Such instability prevents long-term planning and the execution of critical projects.
Minister Alake characterised the 2026 budget proposal as a strategic shift from mere “planning and potential” to concrete “execution, production, and revenue generation.” He highlighted that the proposed sectoral outlay of N156.34 billion represents a critical investment, essential for unlocking the full capacity of solid minerals to diversify the nation's economy, create much-needed jobs, and significantly boost the Gross Domestic Product (GDP).
Challenges of Funding Constraints
Despite these ambitious plans, Alake lamented the persistent funding constraints faced by the ministry. He revealed that as of 31 January 2026, only 50 per cent of the 2025 overhead allocation had been released, while capital releases stood at a concerning zero. This stark disparity between allocated funds and actual disbursements presents a significant obstacle to the ministry’s operational effectiveness and project implementation.
Senator Sampson and other lawmakers present at the committee meeting vocally decried this considerable gap between budget appropriations and the actual release of funds. Their concerns reflect a broader parliamentary sentiment regarding the need for greater financial discipline and support for key economic drivers like the mining sector.
(SOURCE: News Report)