NASS, Solid Minerals Ministry Push For First-Line Charge Status

The National Assembly and the Federal Ministry of Solid Minerals Development have called on the Federal Government to grant the ministry first-line charge status to unlock the vast potential of Nigeria’s mining sector.

They warned that inconsistent budget releases—particularly the failure to release capital funds—are hampering efforts to reposition solid minerals as a major pillar of economic diversification.

The call was made on Monday in Abuja when the Minister of Solid Minerals Development, Dele Alake, appeared before the Joint National Assembly Committee on Solid Minerals Development, chaired by Ekong Sampson, to present the ministry’s 2024 and 2025 budget performance and defend its 2026 budget proposal.

Granting first-line charge status would guarantee statutory releases to the ministry, insulating it from delays and shortfalls in Treasury disbursements, similar to other priority sectors.

Presenting the 2026 estimates, Alake disclosed that the total personnel, overhead and capital ceilings for the ministry and its agencies stand at N165.34 billion for the 2026 fiscal year.

For the main ministry, N1.79 billion is proposed for personnel costs, N1.57 billion for overhead, and N45.54 billion for capital expenditure, amounting to N48.9 billion. The balance is allocated to the ministry’s agencies.

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

According to the minister, the allocation prioritises surveillance, logistics and digital systems aimed at curbing illegal mining, boosting revenue generation and creating an enabling environment for responsible investment.

Alake, however, lamented implementation challenges, revealing that as of January 31, 2026, only 50 per cent of the 2025 overhead allocation had been released, while capital releases for 2025 stood at zero.

“The zero release of the N865.06 billion for capital expenditure in Fiscal Year 2025 is the most critical issue,” he said, noting that key infrastructure, exploration and development projects could not commence as planned.

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

He attributed the improved revenue to reforms, including the formalisation of artisanal miners into cooperatives and corporate entities to enhance compliance and improve access to financing.

“We encouraged 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,” he said.

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

The ministry also expanded its enterprise content management system, advancing digitisation efforts and earning recognition as one of the most digitised ministries in the country over the past year.

Chairman of the Joint Committee, Senator Sampson, commended the ministry’s reforms but expressed concern over the gap between appropriations and actual releases.

“Zero releases on capital are worrisome. How do you drive the harvest of the sector’s full potential with zero per cent release?” he queried.

He noted that a previous N1 trillion intervention in the sector had raised expectations, but warned that without implementation, the budget framework would become ineffective.

Sampson argued that prioritising solid minerals within the national budget would boost investor confidence and demonstrate Nigeria’s seriousness as a global mining destination.

“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,” he said.

Other lawmakers echoed the call for first-line charge status, describing the sector as critical to Nigeria’s economic future.

Responding, Alake welcomed the proposal, urging lawmakers to provide legislative backing to make it achievable.

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

The committee assured the minister that it would examine the proposal and push for stronger prioritisation of the sector in the national budget, pledging collaboration with the executive to ensure the mining industry delivers substantial economic returns for the country.