N/Assembly Deplores Zero Capital Allocation To MDAs

…Seeks First-Line Charge Status For Solid Minerals Sector

The National Assembly on Monday deplored zero capital release to Ministries, Departments and Agencies (MDAs) in the 2025 Budget.

The legislature reacted on Monday in the backdrop of zero capital release to the Ministry of Solid Minerals Development.

The Assembly, through its joint committee on Solid Minerals, said efforts at unlocking the nation’s vast potential in the sector are being hampered by lack of funding.

While appearing before the joint committee of Solid Minerals of the Senate and House of Representatives, the Minister of Solid Minerals Development, Mr Dele Alake, told the lawmakers that the zero allocation did not allow his ministry to execute any of its capital projects in 2025.

Alake said, “The zero release of the N865.06 billion for capital expenditure in Fiscal Year 2025 is the most critical issue.”

According to him, owing to fund constraints, large-scale infrastructure, exploration and sector development projects announced for the year could not take off.

The chairman of the Senate wing of the committee, Senator Ekong Sampson, warned that inconsistent releases, particularly zero capital funding, are undermining efforts to reposition the mining sector as a key driver of economic diversification.

Sampson canvassed a first-line charge status for the ministry would guarantee statutory releases similar to priority sectors. This, he said, would insulating it from delays and shortfalls in treasury disbursements.

However, the minister told the committee that despite the funding setbacks, the ministry surpassed its 2025 revenue target by 80 percent, generating N30.23 billion as at December 31, 2025.

Alake attributed the improved revenue profile to reforms in the sector, including the formalisation of artisanal miners into cooperatives and corporate entities to enhance their bankability and regulatory compliance.

He said, “We were able to encourage them to form cooperatives 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.”

Alake 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.

The ministry, he said, also expanded its enterprise content management system, driving digitisation efforts that earned it recognition as the most digitised ministry in the country in the past year.

Presenting the 2026 estimates, Alake disclosed that the disaggregated personnel, overhead and capital ceilings for the ministry and its agencies stood at N165.34 billion.

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.

The minister said the remaining allocation would go to the various agencies under the ministry.

According to him, the 2026 proposal was a strategic pivot from planning and potential to execution, production and revenue generation.

He stressed that the N156.34 billion outlay for the sector represents a critical investment to unlock the sector’s capacity to diversify the national economy, create jobs and significantly boost the country’s GDP.

He added that the 2026 estimates prioritised foundational tools such as surveillance, logistics and digital systems required to curb illegal mining, increase revenue and create an enabling environment for responsible investment.

The minister however, lamented that implementation challenges have stifled the ministry’s operations, saying that as of January 31, 2026, only 50 percent of the 2025 overhead allocation had been released.

Alake said Nigeria’s improved geological data acquisition has placed the country on the global mining map, drawing strong investor interest.

He cited the recent African mining conference in Cape Town, South Africa, where Nigeria’s exhibition booth attracted significant attention from global 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.

After a prolonged session, Senator Sampson acknowledged the ministry’s strides but expressed concern over the disconnect between appropriations and actual releases.

Returning to the issue of cash crunch, Sampson said, “Zero releases on capital are worrisome. How do you drive the harvest of the sector’s full potential with zero percent release?”

He noted that the previous N1 trillion intervention in the sector had raised expectations, but warned that without implementation, the budget framework is rendered unattractive.

The chairman argued that prioritising the solid minerals sector within the national budget framework would boost investor confidence and signal Nigeria’s seriousness as a 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 told the minister.

Other members of the committee aligned with the call for first-line charge status for the ministry, describing the mining sector as highly sensitive and critical to Nigeria’s economic future.

“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 of them said.

Responding, Alake welcomed the First-Line Charge proposal, describing it as “sweet music” to his ears and urged the lawmakers to consider legislative backing to make it feasible.

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