Like oil states, FG approves 13% derivation for solid-mineral producing states
More succors are coming the way of solid mineral producing states as the Federal Government has given approval for the implementation of the constitutionally guaranteed 13 per cent derivation from mineral revenues to deserving states.
With the approval, solid mineral producing states can now be at par with their mates in oil production which recently went up to 19 states with the incoming of Lagos.
The Minister of Mines and Steel Development, Dr Kayode Fayemi, dropped the hint Tuesday at a 2-day workshop on Special Purpose Vehicles (SPVs) in the development of mining sector in Sokoto State.
He said the workshop would encourage beneficial participation of state governments in natural resources governance.
According to him, “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.
Already 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.
The minister assured the state that no government effort will undermine private sector players or discourage mining enterprise within their states.