As Nigeria moves to diversify the local economy, the federal government has revealed the sharing formula between the federal and state government and the state.
Kayode Fayemi
States with active mining of solid minerals in their domains are to receive 13 per cent derivation revenue, just as their counterparts in oil and gas producing areas, the federal government has said according to Premium Times.
The Minister of Solid Minerals, Kayode Fayemi, who said this in Abeokuta, Ogun State, said 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.
The minister, who was addressing the opening of the National Council on Finance and Economic Development (NACOFED) on Tuesday, did not say when the payment would begin.
The National Resource Fund is about 1.6 per cent revenue allocation from the Federation Account set aside by the federal government for agriculture, solid minerals and water resources development. The minister said President Muhammadu Buhari had already given approval for the Ministry of Mines and Steel Development to grant active players in the sector access to the fund.
The Minister, who spoke on the topic, “Non-oil sector as a sustainable alternative in enhancing revenue generation”, said funding has remained a major challenge to the development of the sector. Mr. Fayemi was however optimistic access to the mining intervention fund, coupled with funding to be provided by Nigerian banks, would boost sector growth.
Mr. Fayemi was however optimistic access to the mining intervention fund, coupled with funding to be provided by Nigerian banks, would boost sector growth.