States To Receive 13% Derivation From Mining Revenue — FG
The Federal Government has disclosed that states will receive 13 per cent derivation from mining revenue to encourage more collaboration.
Minister of Mines and Steel Development, Dr Kayode Fayemi, gave the hint while delivering his ministerial address at the ongoing 2nd Nigeria Mining Week, organised by Miners Association of Nigeria, in partnership with IPAD Nigeria, PricewaterhouseCoopers, and Spintelligent.
He said the event came at the right time when there was a season of interesting developments in the sector, which the government has started implementation of the Mining Roadmap that was launched last year.
He said: “This conference, in its second edition, is fully endorsed by the Federal Ministry of Mines and Steel Development, and is a testament to the possibilities that abound when stakeholders collaborate to achieve set objectives.
“I am pleased that the Mining Week has come to stay and has become a major fixture in our country’s calendar of prominent events. Our ministry is pleased to support this platform that is aligned with our key priorities.
“We have rightly identified as one of our priorities the need to improve our engagement of stakeholders at the sub-national level, particularly the 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 in the sector. Accordingly, we have secured approval for state governments to be beneficiaries of 13 per cent derivation from mining revenue.”
However, Governor Darius Ishaku of Taraba State, in his remarks advocated restructuring in the mining sector in order to reduce tension between the federal and state governments.
Ishaku said: “The exclusive list gives the right in the constitution to the Federal Government, but the land the same constitution gives me the right over the land. There is a conflict there; you have to get to the land to mine the mineral below.”
