L-R:National President, Nigerian Association of Chambers of Commerce, Idustry, Mines and Agriculture (NACCIMA), Iyalode Lawson, Minister of State for Budget and National Planning, Zainab Ahmed and President, Kaduna Chamber of Commerce, Industry, Mines and Agriculture (KADCCIMA), Dr. Muheeba F. Dankaka during the 7th Presidential Quarterly Business Forum at the State House Conference Centre in Abuja.
Solid Minerals: States May Lose 13% Derivation
Ministry of Mines and Steel Development has declared that any state government that bans miners from operating in its jurisdiction could lose its share of the 13 percent mining derivation revenue.
Mr. O’seun Adewale, the Technical Adviser to the Minister of Mines and Steel Development, made this known in Abuja, recently.
He said any state that bans or prevents legal miners from carrying out their legitimate activities could lose the little amount being shared for states every month based on the amount of mineral commodities recorded.
“States are entitled to benefit from revenue of minerals derived from their locations. The revenue is being calculated for each state based on the amount of mineral commodities recorded,” he said.
The 13 percent derivation revenue is shared among states that are active in mining of solid minerals, just like their counterparts in the oil and gas producing areas.
Adewale said the Ministry had written to the states that stopped legal miners from operating in their jurisdictions warning them that mining was on the exclusive list.
Section 39 of the 1999 Constitution of the Federal Republic of Nigeria, as amended puts mining on the Exclusive List.
This confers the right on the Federal Government to issue mining licence, collect royalties and supervise mining operations, as well as take necessary action when any provision of the mineral act is violated.
Recently, Lagos and Ebonyi governments banned legal miners from operating in their jurisdictions due to environmental issues and non-payment of mineral revenue
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