Mineral Revenue States to get Derivation

The Federal Government has given approval for the implementation of the constitutionally guaranteed 13 per cent derivation from mineral revenues to deserving states.

The Minister of Mines and Steel Development, Dr Kayode Fayemi, announced this on Tuesday at a 2-day workshop on Special Purpose Vehicles (SPVs) in the development of mining sector in Sokoto.

He said the workshop would encourage beneficial participation of state governments in natural resources governance.

“We have gotten approval for the implementation of the constitutionally guaranteed 13 per cent derivation for mineral revenue to states.

“This is similar to the derivation that oil-producing states are currently enjoying from the Federation Account.

Fayemi said that the Federal Government was working closely to build the capacity of state governments in the structuring of the vehicles to participate in mining in their jurisdictions.

He added that this was without undermining private sector players nor discouraging mining enterprise within their states.

Gov.  Aminu Tambuwal  said that the state would work with the Federal Government to formalise and manage the artisanal miners.

Tambuwal assured that the government would also work with defence and security agencies to curb illegal mining in the state.

Bello Goronyo, the state Commissioner for Solid Minerals and Natural Resources Development, said the programme was part of efforts by the federal and state governments to diversify their economies through  effective use of the solid mineral resources.

Goronyo said that the state government had taken a giant stride in the drive to diversify the state’s economy through exploration, mapping and identification of the locations of the minerals in the state.

He explained that the state government had given the ministry all necessary support and cooperation to enable it to discharge it’s duties without hitches.