FG Approves 13% Derivation Revenue for Solid Mineral States

Kayode FayemiSolid Minerals Development Minister, Dr Kayode Fayemi
  • FG Approves 13% Derivation Revenue for Solid Mineral States

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 yesterday at a two-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 got 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,” he stated.

Fayemi added 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 or discouraging mining enterprise within their states.

Sokoto State Governor 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.

The state Commissioner for Solid Minerals and Natural Resources Development, Alhaji Bello Goronyo, said the programme was part of efforts by the federal and state governments to diversify the economy through the effective use of 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 the necessary support to enable it to discharge its duties without hitches.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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