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Abuja, Nigeria — August 2025
The Geological Society of Nigeria (GSN) has strongly criticized the Federal Government’s ₦9 billion allocation for the mining sector in the 2025 national budget, describing it as “grossly inadequate to unlock Nigeria’s vast mineral wealth.”
Speaking at a press briefing in Abuja, the GSN President, Prof. Emmanuel Akande, stated that the allocation fails to reflect the strategic importance of solid minerals to Nigeria’s economic diversification drive. He noted that while the government has repeatedly emphasized mining as a priority sector, the budgetary commitment has consistently fallen short of industry expectations.
“Nigeria is sitting on an estimated 44 different mineral types spread across more than 500 locations nationwide, yet we continue to underfund geological mapping, exploration, and value-addition infrastructure,” Akande lamented.
Funding Gap Compared to Peers
The Society pointed out that Nigeria’s mining allocation is a fraction of what comparable African countries like South Africa and Ghana dedicate to exploration and sectoral growth. Experts estimate that Nigeria would need an annual investment of at least ₦100 billion in exploration and infrastructure to meaningfully unlock the sector’s potential.
Risks of Underfunding
According to the GSN, underfunding has three major implications:
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Slow Geological Mapping — Nigeria still lacks a comprehensive and modern geoscience database.
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Investor Apathy — Without credible exploration data, foreign investors may continue to favor other African markets.
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Lost Revenue — Nigeria could lose billions of dollars annually in potential royalties, taxes, and job creation opportunities.
Call for Supplementary Funding
The Geological Society urged the Federal Government to introduce a supplementary funding plan, channel part of the Sovereign Wealth Fund into mineral exploration, and strengthen partnerships with development finance institutions.
They further emphasized that boosting Nigeria’s mining budget is not just about increasing figures but about strategic investment in exploration, research, artisanal miner formalization, and local processing plants.
Industry Stakeholders React
Several mining associations and private operators have echoed GSN’s position, warning that the ₦9 billion allocation risks stalling Nigeria’s mining revival agenda. They called on lawmakers to revisit the appropriation and ensure a realistic financial framework is provided.
Outlook
With the global demand for lithium, cobalt, gold, and rare earth minerals rising, stakeholders warn that Nigeria risks missing a generational opportunity if underfunding continues. For now, the Geological Society’s call serves as a reminder that Nigeria’s economic diversification plan cannot succeed without robust investment in the solid minerals sector.
