National Assembly Takes Steps to Grant Solid Minerals First-Line Charge on Zero Capital Allocation

Lawmakers have proposed granting first-line charge status to the Ministry of Solid Minerals Development following the revelation that the sector received zero capital releases for the 2025 fiscal year, despite significant budgetary appropriations. The National Assembly on Monday described the development as a major blow to Nigeria’s economic diversification drive and moved to ensure automatic funding for the ministry.

In a related development, the Minister of Women Affairs and Social Development, Imaan Sulaiman-Ibrahim, appeared before the Senate on Monday to seek approval for an upward revision of the N134.2 billion allocation proposed for her ministry in the 2026 budget. Lawmakers, however, criticised what they termed “abysmal” capital releases for the ministry’s 2025 budget.

During a budget defence session in Abuja, members of the Joint National Assembly Committee on Solid Minerals Development expressed concern that, notwithstanding large appropriations, the ministry received no capital disbursement in 2025. They further noted that only 50 per cent of its overhead allocation had been released as of January 31, 2026.

The Minister of Solid Minerals Development, Dele Alake, told lawmakers that the failure to release the N865.06 billion allocated for capital expenditure in 2025 had stalled key infrastructure, exploration, and sector development initiatives.

He warned that without first-line charge status—under which statutory allocations are automatically disbursed from the Federation Account, similar to other priority sectors—the solid minerals industry would continue to suffer from Treasury delays and funding shortfalls.

According to Alake, inconsistent funding remained the most critical challenge undermining efforts to reposition mining as a major driver of economic growth, employment generation, and foreign investment. Lawmakers agreed that granting first-line charge status would shield the ministry’s budget from bureaucratic bottlenecks and provide predictable funding, a step they said was essential if Nigeria was serious about harnessing the full potential of its mineral resources.

Chairman of the Joint Committee, Ekong Sampson, described the zero capital release to the solid minerals sector as “worrisome” and fundamentally inconsistent 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 ₦1 trillion allocation to the sector, had raised expectations among industry players and investors, but warned that without actual cash backing, “the budget framework is rendered quite unattractive.”

Other lawmakers echoed calls for urgent reform of the funding structure, arguing that the solid minerals sector, like petroleum, 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 lawmaker asked.

Responding, the Minister of Solid Minerals Development, Dele Alake, welcomed the proposal, describing it as “sweet music” and urging the National Assembly to provide the necessary legislative backing.

“If you legislate on it, it becomes doable. Then we will put our executive machinery to work 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 ₦165.34 billion for the fiscal year.

For the core ministry, ₦1.79 billion was proposed for personnel costs, ₦1.57 billion for overheads, and ₦45.54 billion for capital expenditure—bringing the total to ₦48.9 billion—while the balance was allocated to its agencies.

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

According to him, the ₦156.34 billion sectoral outlay represents a critical investment aimed at unlocking the solid minerals sector’s capacity to diversify the economy, create jobs, and significantly boost Gross Domestic Product (GDP).

The minister said the proposed allocation prioritises surveillance, logistics, and digital systems to curb illegal mining, improve revenue collection, and create a stable environment for responsible investment.

Despite funding constraints, Alake revealed that the ministry exceeded its 2025 revenue target by 80 per cent, generating ₦30.23 billion as of December 31, 2025.

He attributed the improved performance to reforms that formalised artisanal miners into cooperatives and corporate entities, improving access to finance and regulatory compliance.

“We were able to encourage them to form corporations so they would no longer be labelled illegal miners,” he said. “They now operate as formal structures, attract financing, and enable government to collect royalties, taxes, and other civic obligations.”

Alake added that 388 mineral buying centres were established during the year under review, artisanal miners were trained, and four high-risk abandoned mine sites were reclaimed.

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

According to the minister, improved geological data acquisition has placed Nigeria firmly on the global mining map, attracting growing 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 global mining giants. Even the little we have done has placed Nigeria on the map,” he said.

Lawmakers, however, maintained that without predictable and sustained funding, such gains would be difficult to consolidate.

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

According to them, granting priority funding to solid minerals 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, showing clearly that with better funding, even greater results are possible,” Sampson said.

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