Business
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About eight states producing solid minerals are to be included in the 13 percent derivation fund
| By Anayo Ezugwu | Nov. 24, 2014 @ 01:00 GMT |
MORE revenue will soon flow into the coffers of about eight states producing solid mineral in the country. The states are to be included in the payment of 13 percent derivation fund currently being enjoyed by the oil producing states. Under the new regime, Elias Mbam, chairman, Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, said states like Ogun, Kaduna, Enugu, Benue, Niger, Plateau, Nasarawa, Osun and the Federal Capital Territory, FCT, will now get more funds from the federation account.
Mbam, who broke the good news when members of the House of Representatives committee on finance, visited his commission on Thursday, November 6, as part of their oversight function, stated the modalities for sharing the accrued funds among the solid minerals producing states. According to him, the RMAFC had liaised with the ministry of mines and steel to get the solid mineral sector to contribute to the federation account, for the first time.
“The result of the collaboration is that the solid minerals sector is now contributing to the Federation Account for the first time. The contributing states will henceforth enjoy the 13 percent derivation on the amount of revenue accruing from their states. The commission is preparing a template for the sharing of the 13 percent derivation for solid minerals,” he said.
Investigations showed that there is an estimated reserve of more than 100 million tonnes of talc in Niger, Osun, Kogi, Kwara, Taraba and Kaduna, while more than three billion tonnes of iron ore are found in Kogi, Enugu, Niger, Zamfara and Kaduna States. Benue is said to house a total reserve of 1.5 billion tonnes of rock salt and large quantity of limestone, while Plateau, Kaduna and Bauchi are said to have a large concentration of gemstones. Nasarawa, Gombe, Kogi and the FCT also have tantalite, which put them in the league of solid minerals producing states.
Enugu controls a large concentration of coal, while Taraba and Bauchi have bentonite and barite. Other solid minerals found in Nigeria include lead zinc, gold, bitumen, gypsum and kaolin.
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