Federal Government has given approval for the implementation of the constitutionally guaranteed 13 percent derivation from mineral revenues to deserving states.
The Minister of Mines and Steel Development, Dr Kayode Fayemi, announced this on Tuesday at a workshop on Special Purpose Vehicles (SPVs) in the development of mining sector in Sokoto.
He said, “We have gotten approval for the implementation of the constitutionally guaranteed 13 percent derivation for mineral revenue to states.
“This is similar to the derivation that oil-producing states are currently enjoying from the Federation Account.”
Fayemi said 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 is without undermining private sector players nor discouraging mining enterprise within their states.
Most states in Nigeria have one or two solid minerals. This is a good move if followed through.
