States involved in Mining to Receive 13% Derivation from FG

States involved in Mining to Receive 13% Derivation from FG

The federal Government has pledged to support states involved in mining of solid minerals in their domains with a 13% derivation revenue from the federation account, just as their counterparts in oil and gas producing areas.

FG has then given approval for the implementation of the constitutionally guaranteed 13 per cent derivation from mineral revenues to deserving states states

The Minister of Mines and Steel Development, Dr Kayode Fayemi, announced this Tuesday in Abeokuta, Ogun State, saying that 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.

Fayemi mentioned that the workshop would encourage beneficial participation of state governments in natural resources governance. Also 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 that this was without undermining private sector players nor discouraging mining enterprise within their states.

Gov.  Aminu Tambuwal  said that the state would work with the Federal Government to formalise and manage the artisanal miners,  assuring that the government would also work with defence and security agencies to curb illegal mining in the state.

Alhaji Bello Goronyo, the state Commissioner for Solid Minerals and Natural Resources Development, said the programme was part of efforts by the federal and state governments to diversify their economies through  effective use of the solid mineral resources, 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.