States with active mining of solid minerals in their domains are to receive 13 per cent derivation revenue, just as their counterparts in oil and gas producing areas, the federal government has said.

The Minister of Mines and Steel Development, Kayode Fayemi, who said this in Abeokuta, Ogun State, said serious-minded operators in the mining sector would soon be granted access by the government to the intervention finance for mining from the National Resource Fund.

The minister, who was addressing the opening of the National Council on Finance and Economic Development (NACOFED) on Tuesday, did not say when the payment would begin.

The National Resource Fund is about 1.6 per cent revenue allocation from the Federation Account set aside by the federal government for agriculture, solid minerals and water resources development. The minister said President Muhammadu Buhari had already given approval for the Ministry of Mines and Steel Development to grant active players in the sector access to the fund.

The Minister, who spoke on the topic, “Non-oil sector as a sustainable alternative in enhancing revenue generation”, said funding has remained a major challenge to the development of the sector. Mr. Fayemi was however optimistic access to the mining intervention fund, coupled with funding to be
provided by Nigerian banks, would boost sector growth. Mr. Fayemi was however optimistic access to the mining intervention fund, coupled with funding to be provided by Nigerian banks, would boost sector growth.

"This is a significant shift. It signpostsStates with active mining of solid minerals in their domains are to receive 13 per cent derivation revenue, just as their counterparts in oil and gas producing areas, the federal government has said.


He said payment of 13 per cent derivation to states would deepen the ministry’s partnership with the state governments. Besides, he said arrangements were afoot to establish a Council of Mining and Mineral Resources Development, a quarterly forum for the minister, commissioners responsible for mining and natural resources at the states as well as other relevant government officials.

“The forum would be an avenue to discuss pertinent issues on the mining sector, which are of concern to the federal and state governments. It will also allow us to track progress on agreed areas of collaboration,” Mr. Fayemi said.

The minister also unfolded the ministry’s plan to set up zonal offices of the Mining Cadastral Office, to bring its operations closer to the states. Equally, he said the federal government would work with states to find commercial means to co-invest alongside private companies to bring mining assets to market faster and more profitably. The minister assured state government the right regulatory frameworks to encourage investors comply with global best practices in resource extraction, by integrating all relevant environmental protocols to conduct mining activities and related business.

“This is why ecological justice is one of the major planks of our approach to the repositioning of the solid minerals sector,” the minister said.

koladebrainiac:
This will encourage states to invest aggressively on solid minerals

jesse8048:
They can have all 100%, we shud implement true federalism. No reasonable mining yet but they have already tabled down their 13%. In less than 2years it will rise to 25% and so on.

FriendChoice:



If the solid minerals are on Niger Delta domain you will not come to spew this trash. selfishness and hatred. You enjoy 13 percent from oil, you still want the 13 percent of other regions to be put in Federal account as national cake. Selfish person.

They have not even begun credible investigation for marketable raw materials and industrial-level exploration and they are already looking for 13% derivation.
Parasites who can't receive what they dish out. I am sure if these guys had oil, it would be a grip-like hold.

FriendChoice:
Some Niger Delta Avengers are already upset, the poster above me calling the mining state parasite. In real sense you're the Parasite. Read again, they did not say the revenue will come from oil, rather from the solid minerals extracted from their own land. Hatred will kill you.

MadCow1:
I concur..



What good for the food is good for the Kanda.

koladebrainiac:
This will encourage states to invest aggressively on solid minerals

tiwiex:


I thought the 13% derivation was to compensate the oil producing states. The goose that lays the golden egg. I see no justification in giving part of it to the mining states unless it can be proven they contribute significantly to the purse. I also foresee another problem. Many states have solid minerals even in the north. This seems like a strategy to share 13% derivatives to states that were not even part of the idea. When solid minerals start generating revenue, they can take 13% of that. I thought Fayemi's job was to bring in FDI to make that sector viable?

Olukat:



Hope you are comfortable?

I don complain give you before?

tiwiex:


I thought the 13% derivation was to compensate the oil producing states. The goose that lays the golden egg. I see no justification in giving part of it to the mining states unless it can be proven they contribute significantly to the purse. I also foresee another problem. Many states have solid minerals even in the north. This seems like a strategy to share 13% derivatives to states that were not even part of the idea. When solid minerals start generating revenue, they can take 13% of that. I thought Fayemi's job was to bring in FDI to make that sector viable?