Abuja, February 2026 — Nigeria’s legislative and executive arms took a decisive step this week to address chronic under-funding in the solid minerals sector, with lawmakers advocating for first-line charge status for the Federal Ministry of Solid Minerals Development.
The move comes after official disclosures revealed that capital releases for 2025 stood at zero, a development legislators described as a direct impediment to the sector’s ability to contribute meaningfully to economic diversification and investment flows.
Stalled Funding Undermines Strategic Agenda
During a budget defence session before the Joint National Assembly Committee on Solid Minerals Development, chaired by Senator Ekong Sampson, lawmakers expressed alarm that despite parliamentary approval of substantial appropriations, the ministry received no capital funding in 2025, with only 50 per cent of its overhead allocation released by January 31, 2026.
Minister of Solid Minerals Development Dele Alake told the committee that the N865.06 billion earmarked for capital expenditure was not disbursed, leaving critical infrastructure, exploration, and sector development projects in limbo. He warned that continued reliance on discretionary budget releases would constrain the ministry’s ability to deliver on its mandate of driving economic growth, job creation, and foreign investment attraction.
First-Line Charge: A Structural Funding Reform
First-line charge status is a constitutional provision that insulates certain government expenditures from discretionary delays and ensures automatic budget releases from the Federation Account. This sttus has traditionally been reserved for priority sectors such as debt servicing and security. Lawmakers are now pressing to extend this protection to the solid minerals sector, arguing that predictable financing is a prerequisite for meaningful development and investor confidence.
Senator Sampson captured this sentiment in questioning: “How do you drive the harvest of the sector’s full potential with zero per cent release?” The committee noted that previous fiscal interventions, including a N1 trillion allocation, had generated expectations within the industry and among investors, but these could not be realised without timely funding.
Minister Alake welcomed the proposal, describing it as “sweet music” and emphasising that legislative backing would make predictable funding implementable. “If you legislate on it, it becomes doable. Then we will put on our executive machinery to ensure delivery,” he said.
Budget Priorities and Sectoral Imperatives
In presenting the ministry’s 2026 budget proposal, Alake outlined a total sectoral allocation of N165.34 billion, including personnel, overhead, and capital expenditure. For the core ministry, the proposed breakdown included N1.79 billion for personnel, N1.57 billion for overhead, and N45.54 billion for capital, with additional amounts distributed to affiliated agencies. The minister characterised the fiscal posture as a shift from “planning and potential” to “execution, production and revenue generation.”
The capital outlay is aimed at foundational components such as surveillance systems, logistics, digital infrastructure to tackle illegal mining, improve revenue collection, and create a more attractive environment for responsible investment.
Performance and Pathways
Despite the funding shortfall, the ministry reported improved revenue performance in 2025, exceeding targets by 80 per cent and generating N30.23 billion, partly through initiatives to formalise artisanal miners into cooperative and corporate entities. These reforms, coupled with the establishment of 388 mineral buying centres, are designed to widen the licit market footprint and deepen regulatory compliance.
The ministry also highlighted progress in digital systems expansion and geological data acquisition, positioning Nigeria more competitively on the global mining map and attracting investor interest at major events such as the African Mining Conference in Cape Town, South Africa.
Policy and Investment Implications
- Budget Architecture Reform: Granting first-line charge status would help bridge the disconnect between parliamentary allocations and actual releases, safeguarding strategic investments from fiscal bottlenecks.
- Investor Confidence: Predictable financing signals commitment, reducing risk premia and strengthening Nigeria’s attractiveness to global mining capital.
- Sector Growth and Diversification: Reliable funding can unlock exploration, infrastructure development, and formalisation efforts critical to solid minerals contributing real economic value beyond resource rents.
- Regulatory and Institutional Support: Enhanced digital capacity and geological data systems serve as foundational public goods that catalyse private sector participation and risk sharing.
Conclusion
The National Assembly’s push for first-line charge status for the solid minerals sector marks a critical juncture in Nigeria’s endeavour to reposition mining as a driver of diversification, jobs and growth.
By addressing structural funding constraints and aligning budget mechanisms with long-term strategic imperatives, policymakers signal a recognition that the mining sector’s potential cannot be realised through appropriations alone; it requires predictable, sustained financial commitment embedded within the national fiscal architecture.