President Muhammadu Buhari has approved a revenue sharing formula for states with mineral resources to ensure development.
Kayode Fayemi
The Minister of Mines and Steel Development, Dr. Kayode Fayemi, has
assured states on 13 per cent derivation for mineral revenue following
the approval by the Federal Executive Council, according to DailyTrust.
“We have got approval for the implementation of the
constitutionally guaranteed 13 percent derivation for mineral revenue to
states, similar to the derivation that oil-producing states currently
enjoy from the federation accounts,” he said.
He stated this yesterday at a two-day capacity building workshop on
Special Purpose Vehicles, SPVs for beneficial participation of state
governments in mining, jointly organised by the Federal Ministry of
Mines and Steel Development and the Sokoto State Ministry of Solid
Minerals and Natural Resources Development.
Fayemi said the ministry had begun some reforms in line with the
recommendations of the ‘Roadmap for the Growth and Development of the
Nigerian Mining Sector’ which he noted emphasised the need for
collaboration between the federal government and the states as well as
build stronger co-operative processes and structures.
“We have reviewed our approach to licensing with regards to
state ownership. While in principle we cannot give state governments
licenses as separate legal entities, companies in which the states have
an ownership interest can bid for and receive licenses,” he stated.
The minister said they were working with governments and relevant
ministries to formalise and manage artisans miners while also working
with defence and security agencies to curb illegal mining in the
country.
He added that the ministry had commenced the modalities for
capacity building in community-based organisations and other community
representatives, helping them participate in key decisions in mining
operations and processes.
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