FG Threatens To Withhold States’ 13% Derivation Revenue

The Ministry of Mines and Steel Development said 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 an interview with newsmen in Abuja on Monday.

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 per cent 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 states that stopped legal miners from operating in their jurisdictions warning them that mining was on the exclusive list.

NAN reports that 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 issue and non-payment of mineral revenue.

The Miners Association of Nigeria described the actions of the two state governments as interfering with the mining operations of their members, which was a breach of the constitution of the Federal Republic of Nigeria.

Source: NAN

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