By Simon Ebegbulem

BENIN—THE Federal Government has said that it has secured 13 per cent derivation mining revenue for the 36 states of the Federation with a view to encouraging states to exploit that sector to boost their revenue generation capacity.

This was disclosed by the Permanent Secretary, Ministry of Mines, Steel and Development, Alhaji Abass Mohammed, at a two-day sensitization and enlightenment workshop for stakeholders, in Benin City, Edo State, yesterday.

According to him, the Federal Government was working with state governors with a view to reviving that sector. He urged states to continue to liaise with the Federal Government and private investors to make that sector more profitable and attractive for investors.

Alhaji Mohammed, who was represented by Alhaji Sanusi Asiru, said: “We have rightly identified, as one of our priorities, the need to improve our engagement of stakeholders at the sub-national level particularly state governments and communities. We realise that in order to give the states good reason to work with us, we need to create avenues for a greater degree of financial participation and revenue sharing.”

“Accordingly, we have been able to secure approval for state governments to be beneficiaries of 13 per cent derivation from mining revenue. This is a significant shift and it is part of our commitment to facilitating a win-win situation for all stakeholders,” he stated.

In his opening remarks, the Secretary of Solid Minerals Development Fund, Alhaji Mahe Ahmed, regretted the inability of the Federal Government to create a framework for the mining sector, nothing that it has led to the dwindling fortune for over 45 years.

“Unfortunately, in the approximately, 45 years of decline of the country’s mining sector, we have been unable to articulate a framework which the sector will viably stand and operate and as such we have missed out on various opportunities to capitalize on the up surging of commodity process. Thus, we have a mixed situation of relatively virgin mineral fields and yet a lack of appreciable national economic contribution from the field.

“A well-developed mining industry is capable of generating major economic activities to stimulate growth with great potentials for engendering huge revenues to address developmental challenges in other critical sectors such as education, health, agriculture, transportation and infrastructures,” he stated.

The President, upon the receipt of advice from the Revenue Mobilisation Allocation and Fiscal
Commission, shall table before the National Assembly proposals from the Federation Account, and
in determining the formula, the National Assembly shall take into account, the allocation principles
especially those of population, equality of states, internal revenue generation, land mass, terrain as
well as population density. Provided that the principle of derivation shall be constantly reflected in
any approved formula as being not less than thirteen percent of the revenue accruing to the
Federation Account directly from any natural resources.

Blue3k:
This news is odd to me honestly. Btw the way the Derivation law is written this should have always been the case. Ogun and Kogi will benefit alot from this development.




Section 162, 1999 Constitution of Nigeria

EVarn:
The problem with states investing in the mining sector is that mining requires long term commitment and a lot of infrastructure; state governors either do not have the political will or they have limited time to conclude such plans,so they dont even venture into it at all(afterall,the people always clamour for visible results,not blueprints,and the governors will always tow the line of political correctness).

Blue3k:

I don't want these losers investing directly into anything. The state is most inefficient party at this. We seen it too well in Nigeria. The only thing they know how to do well is get in middle of good situation with joint venture.
The best thing they could do is make sure business easy to conduct, educating population to take advantage, and infastrure to move these minerals. These mines are usually in remote places.

MasterChen:
If this is true, then it's great news for Ogun state. Besides, why isn't this on the FP yet

Cc Mynd44 lalasticlala

ZombieTAMER:
This should be the more reason we all should be clamouring for the Balkanization of the country...
Support separation today

AshiwajuFoward:


Not just Ogun but the entire SW region. Kogi will also be another big beneficiary.

Blue3k:


Your chart it old. Get the 2016 one.

ZombieTAMER:
This should be the more reason we all should be clamouring for the Balkanization of the country...
Support separation today

Pavore9:
Even if it is 50%, it will be squandered!

Blue3k:
This news is odd to me honestly. Btw the way the Derivation law is written this should have always been the case...

Section 162, 1999 Constitution of Nigeria