Alake, speaking through a post on his X account on Saturday, said the allocation was grossly inadequate to unlock Nigeria’s vast mining potential. He noted that despite the challenges of underfunding, reforms introduced by the ministry have yielded significant results, including increased revenue and job creation in the sector.
He reported that the sector surpassed its 2024 revenue target of N11 billion, generating N38 billion, while job creation rose to 45,000, up from 30,000 the previous year.
The minister expressed concern that without adequate funding, Nigeria would fail to attract critical investments in mineral exploration, which he described as essential to building the geological data required to draw major industry players. Exploration activities, he argued, are the foundation for any successful mining industry and a necessary step toward transforming solid minerals into a cornerstone of Nigeria’s economy. 
“We have not only succeeded in attracting global attention to Nigeria’s mining sector, but we have also increased revenue significantly, despite receiving only 18% of our approved capital budget for 2024,” Alake said. “However, in our budget proposal for 2025, we estimated over N531 billion for capital expenditure, but we were allocated just N9 billion. This is unacceptable. Without substantial investment in exploration, Nigeria will not be able to generate the geo-data necessary to attract major players. I have protested this to the National Assembly, and we seek their support for a radical upward review of the budget.”
The reduction of the budget has triggered backlash from the National Assembly, where lawmakers on the Joint Committee on Solid Minerals rejected the proposed N9 billion capital allocation as insufficient. The committee argued that the current budget estimate would fail to position the mining sector as a viable alternative to oil and limit the country’s ability to tap into the green energy revolution, which is expected to drive global demand for minerals in the coming decades.
The Chairman of the Joint Senate and House of Representatives Committee on Solid Minerals, Senator Ekong Sampson, said Nigeria’s ambition to transition to a more diversified economy cannot be achieved without serious financial commitments to the mining sector. He noted that minerals critical to green energy technologies, such as lithium, cobalt, and rare earth elements, remain largely untapped in Nigeria due to a lack of exploration activity.
“We are at a critical juncture,” Sampson said. “The world is moving toward a green energy future, and minerals are at the heart of that transition. Nigeria has the resources, but we are not investing enough to discover, map, and develop these assets. This current allocation is a setback for our economic diversification efforts.”
The committee’s co-chairman, Gaza Gbefwi, also criticized the budget cut, describing it as a “disservice” to Nigeria’s future. He warned that the government’s failure to prioritize the mining sector could jeopardize the country’s long-term economic stability and reduce its ability to generate non-oil revenue.
“As elected representatives, we have a duty to ensure that Nigeria’s economy is secured for future generations,” Gbefwi said. “The reliance on oil has left us vulnerable for too long. We need to diversify, and the solid minerals sector holds enormous promise. Cutting the budget for this sector at a time when the world is shifting to mineral-intensive technologies is a grave mistake. If we fail to invest now, future generations will not forgive us.”
Lawmakers expressed particular frustration over the timing of the budget reduction, as Nigeria seeks to position itself as a key player in the global supply chain for critical minerals. The ongoing energy transition driven by demand for electric vehicles, renewable energy storage, and other technologies is expected to push global demand for minerals like lithium and cobalt to unprecedented levels. Nigeria’s lack of exploration activity, however, leaves the country at risk of missing out on this economic opportunity.
Senator Natasha Akpoti-Uduaghan went further, calling for a suspension of the screening process for the ministry’s 2025 budget until a higher allocation is secured. She and other committee members invited the Ministers of Budget and National Planning and Finance to address the concerns raised and advocate for an upward review of the mining sector’s budget to reflect the strategic importance of the industry.
“The mining sector can drive the future of Nigeria’s economy if we allow it to,” Akpoti-Uduaghan said. “This is not just about numbers. It’s about the future of our country, and we cannot compromise that with misplaced budget priorities.”
