- from Gloria Ezeiru -

Solid minerals-producing states are now entitled to 13 per cent derivation in the allocation formula.

The long-awaited new revenue allocation formula would be released next month, the chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Engr. Elias Mbam, stated this in Abuja yesterday.

He said the accountant general of the federation has opened an account in the Central Bank for revenue from solid minerals, noting that this is where all revenues from solid minerals will be deposited.

He added that, by this, the 13 per cent derivation in the allocation formula was not exclusive for oil, but includes any other natural resources.

Mbam, who called on Nigerians to desist from politicising the review of the new revenue formula, assured  that it would be worked out in a fair, just and equitable manner.

Receiving Governor Umar Tanko Al-Makura of Nasarawa State in his office, yesterday in Abuja, Mbam stressed on the need to ensure revenue diversification in the country.

A committee set up to review the allocation formula submitted its report to the commission in April, last year.

Mbam described the process as a daunting task which involves looking into a series of documents, making consultations and going to the field to verify some of the indices.

By the current sharing formula, the federal government gets 52.68 per cent, states 26.72 per cent, and local governments 20.60 per cent. In addition, oil-producing states get extra revenue on the 13 per cent derivation principle.

According to the RMAFC boss, “I want to inform you that the commission has progressed in the process of the review. A lot has been said and done and I wish to use this opportunity to advise the governor that the issue of reviewing the revenue allocation formula should not be over-politicised. This will not help the process, rather it will overheat the polity, and may even generate some level of suspicion among us. I want to assure Nigerians that the commission shall be guided by relevant provisions of the law. Our findings and consultations will be fair, just and equitable. Every memorandum and all interests shall be considered during the review. It would be done in such a way that revenue allocation will be directly proportional to responsibility.”

Earlier, the governor requested that his state should benefit from the 1 percent allotted to the Federal Capital for development of the Federal Capital Territory.

The governor explained that this should be done because Nasarawa State, being the state that hosts more than 50 per cent of the workforce in the FCT, absorbs the population explosion of the FCT that gets the state’s facilities overstretched.

He said, “It is for this reason that I am personally appealing to the commission to have a look at the formula that provides the Federal Capital the 1 per cent for the development of the FCT because the utilisation of such resources is more eminent in the contiguous state outside the FCT.

“Just like the oil-producing states get 13 per cent derivation from the allocation, we feel aligning states or contiguous states close to the FCT should have a chunk, a little more of the 13 per cent of what goes to the FCT.”

Replying, he said that the accountant-general has opened an account in the Central Bank for revenues from solid minerals to be deposited.

http://allafrica.com/stories/201203060364.html

Revenue from oil should not be included. Otherwise mend will make sure oil is not flowing again.

Another way of encouraging corruption, at the end of the day that account will be red flag,

my biggest problem is what will they do with more money sef, the so called little they have, they have nothing tangible to show with it.

Why not just let every state control their shi't and pay 13% to the federal government?!

Who knows of any Solid mineral company in Nigeria?!  

This is just a big scam to defraud the Niger Delta. . .

The northern governors think they're good politicians and can fool GEJ and his cabinet.We in the oil producing areas'll not accept to get 13% with a state that says it has solid minerals that the country's not benefiting from.Do they knw the gravity of inconvinence the oil producing areas are sufering from oil exploration and one mallam who breeds cows wants 13%!They shld be careful what they do at Abuja or the oil producing states'll off all wells.

It is all about the percentage.

For example if Rivers state generates 100 billion naira monthly from oil to the Federal government, then Rivers state is entitled to 13% monthly which is 36.4 billion naira/month

And if Gombe state generates 15 billion naira monthly from any of it's natural resources like solid minerals to the Federal government, then Gombe state is entitled to 13% monthly which is 1.95 billion naira/month

But these Northern governors are really not thinking well including CBN governor Sanusi, the way they are pushing this agenda may backfire because their region contributes virtually nothing to the national budget. Their main source of allocation comes from the federal government of which about 98% of the FG cash is from the oil producing regions in the south. It means that the north gets more than it contributes to the Federal Government.

The main problem in every state in Nigeria is mismanagement, corruption and states in the south like Bayelsa and others barely have nothing to show for their huge budget. And same problem is in the north, give them 1 trillion naira. It will go into private pockets leaving their people impoverished.

If that is the case every state in Nigeria has solid mineral.

let them get 13% from the money accrued from only solid minerals. You cannot say that you have minerals on paper and they will give you 13% from oil money.

Explore your minerals, make money and take 13% from all you make

sirjec:

let them get 13% from the money accrued from only solid minerals. You cannot say that you have minerals on paper and they will give you 13% from oil money.

Explore your minerals, make money and take 13% from all you make

Its all a scam to get more money from oil. Lets see how this would pan out. I hope the Niger Delta leaders are studying the situation.

Where were they getting their allocation from b4, is it not from the oil money/ If they want this sharing formular then they shud stop collecting the present money they collect from oil revenue.

They want to collect money from oil revenue that practically runs the economy and then collect from their own minerals that no one is even exploring. Will the Niger Delta states get anything from their minerals as they have been getting from the oil revenue assuming there is any exploration going on at all?

This country is really sick.

I reiterate: EXPLORE YOUR MINERALS AND DO ANYTHING WITH IT after paying a certain agreed percentage to the FG.

True federalism is the way but these guys are just trying to be clever by half while avoiding what the answer is. SMH

, this makes me want to study more about the solid minerals from each state up north, i hope they don't see this as a problem cos they seem to be wired to create katakata

The North just shut themselves in the foot.

With these move all Southern states(SS,SW,SE) will get 13% derivation.

But how many Northern state will get it.

Good move

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http://thinkafricapress.com/nigeria/blog/week-nigeria-ojukwu-buried

I prefer each state controls his own resources, but if they want to go by this way then it should be shared by the percentage each state brings to the federal account. I think that's fair enough.

Which solid minerals The rocks in the North are poorly mineralised. Yes there are solid minerals but you cannot get them in enough viable commercial quantities. Lets start with Gold - Gold can be found in Niger state from the poorly mineralised belts in the older granite that run through river channels in Chanchagi and kainje area. They are not commercially viable. Only locals are prospecting for it.  Iron Ore - found in Lokoja, Niger and parts of benue. These are the only minerals of commercial quantity but they are higher contaminated with sulfur. To develop it, you will have to spend three times the amount you will spend say in India and the States, little wonder our Ajaukota steel has remained moribund and non viable. Limestone is the only real Viable solid mineral. Can be found in Bauchi, Gombe, Sokoto and parts of Yobe. Presently the most viable deposit can be found in ogun state. Tin and columbite can be found around Jos area but our colonial masters have already mined them dried before they left. What we have are just mine lakes which litters around Jos. Don't get me wrong, there are lots of minerals in the North which I may not know about but there will be few willing investors due to religious and political inclination of the Northern parts of the country which is not being helped by Boko Haram.

Agriculture is what the North has and until they go back to mechanical and industrial farming, there will still be poverty in the North. There is enough arable land to grow any kind of crop you want. These Governors should take away their eyes from oil money for once and invest in Agriculture. This solid mineral account is another scam, another way to get extra money from the federal Govt which will still come from oil money. I dey laugh.

This is a good move.I hope it's not all talk

Good move thou but the kind of politicians Nigeria have at the moment is not really a well come development

jmoore:

It is all about the percentage.

For example if Rivers state generates 100 billion naira monthly from oil to the Federal government, then Rivers state is entitled to 13% monthly which is 36.4 billion naira/month

And if Gombe state generates 15 billion naira monthly from any of it's natural resources like solid minerals to the Federal government, then Gombe state is entitled to 13% monthly which is 1.95 billion naira/month

But these Northern governors are really not thinking well including CBN governor Sanusi, the way they are pushing this agenda may backfire because their region contributes virtually nothing to the national budget. Their main source of allocation comes from the federal government of which about 98% of the FG cash is from the oil producing regions in the south. It means that the north gets more than it contributes to the Federal Government.

The main problem in every state in Nigeria is mismanagement, corruption and states in the south like Bayelsa and others barely have nothing to show for their huge budget. And same problem is in the north, give them 1 trillion naira. It will go into private pockets leaving their people impoverished.

What sort of stuupid maths is this? So 13% of 100 billion is 36.4 billion?. He even ended it with fractions. SMH.

magic

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its time for the alhajis and mallams to chop money. tufiakwa.