The Federal Government has given approval for the implementation of the constitutionally guaranteed 13 per cent derivation from mineral revenues to deserving states.
According to the News Agency of Nigeria (NAN), the Minister of Mines and Steel Development, Dr Kayode Fayemi, announced this on Tuesday, 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 gotten 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 said.
Dr Fayemi said 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 nor discouraging mining enterprise within their states.
Governor Aminu Tambuwal of Skoto State, on the occasion, said that the state would work with the Federal Government to formalise and manage the artisanal miners.
Governor Tambuwal assured 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.
Also, the Federal Government has secured about $150million (N45.7 billion) support from the World Bank, for the Mineral Sector Support for Economic Diversification (MSSED or MinDiver) programme.
Dr Fayemi, who stated this in Abuja, said the ministry was working with the Nigerian Sovereign Investment Authority, the Nigerian Stock Exchange (NSE) and other institutions to assemble a $600million investment fund for the sector, bythe first quarter of 2017.
“We have secured support from the World Bank for the funding of $150million Economic Diversification MSSED or MinDiver) programme.”
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