Solid Minerals Minister Urges Senate to Increase Funding for Mining Sector

Dr. Dele Alake, the Minister of Solid Minerals Development, has requested the Senate to increase funding for the ministry to boost its capacity for exploring Nigeria’s vast mineral resources. He made this appeal during the Senate Committee on Solid Minerals’ investigative hearing, where he highlighted inadequate funding and security issues as key obstacles to the growth of the mining sector.

In a statement released by the minister’s special assistant on media, Segun Tomori, Alake criticized the low investment in mining exploration. He revealed that only $2.5 million was invested in exploration last year, citing figures from Standard & Poor’s. The global rating agency ranked Nigeria’s exploration budget as 12th in Africa, with Ivory Coast leading with a budget of $147 million.

Alake explained that Nigeria’s proposed exploration budget for 2024 is N70 billion, but the current budget may not support this goal. He asked the Senate for assistance to fund exploration and equip personnel to properly regulate the mining sector.

To address illegal mining, the minister announced the formation of a 2,220-person Mining Marshals group, with 60 officers assigned to each state and the Federal Capital Territory. He noted that there are several types of illegal miners, ranging from those without licenses to licensed miners operating outside their designated areas, and stated that the country loses over $9 billion annually to illegal mining.

Additionally, the ministry has launched campaigns through Artisanal and Small Miners (ASM) extension officers and radio programs on 113 stations across the country, aiming to promote legal mining and encourage artisanal miners to form cooperatives.

Alake also mentioned the government’s plan to establish six new processing centers across the geo-political zones, emphasizing that legislative backing and additional funding are crucial to implement these reforms.

Senate President Godswill Akpabio, who inaugurated the investigative hearing, commended the minister for attending and emphasized the importance of collaboration between the executive and legislative branches to reduce losses from illegal mining. The chairman of the Senate Committee on Solid Minerals Development, Senator Ekong Sampson, echoed this sentiment, noting that the hearing aimed to address challenges and unlock the mining sector’s potential for the benefit of Nigeria’s economy.