Post by Trade facilitator on Sept 13, 2020 13:58:19 GMT 1
Federal Government Approves 13% Derivation For Revenue Generated From Mining
The Federal Government of Nigeria has approved a 13 percent derivation to all the states of the federation for revenue generated through mining to encourage collection of mining tax in states.
Minister of State, Mines and Steel Development, Dr Uchechukwu Sampson Ogah, disclosed this when he paid a courtesy visit to Governor Bala Mohammed of Bauchi State during his tour of mining sites to interact with miners and communities.
He said the officials of the ministry were in Bauchi to seek synergy between the state and federal government as it relates to mining in line with the economic diversification agenda of President Muhammadu Buhari.
The Minister told the governor that collaboration between states and federal government as well as community leaders was imperative to smooth mining operations in Nigeria.
“Almost all the minerals are in Bauchi state.
“Bauchi is one of the key states that we are proud of in terms of deposit of mineral resources but our concern is that the resources are yet to be harnessed by the state government due to some challenges,” he acknowledged.
He said the ministry was already promoting the mineral potentials of Bauchi state to serious mining investors who are willing to invest in the state.
“We have visited the areas where the mining ore is being processed and that is why we are preaching that no mineral should be taken out of Nigeria in raw form but have to be processed so that we get all the components to add value to what we are exporting,” he added.
While responding, Governor Mohammed urged the federal government to establish a robust funding mechanism to enable genuine miners access financial interventions, adding that giving financial assistance to genuine miners will go along way towards reducing, tackling and discouraging illegal mining operations in the country.
“We have recognised your passion, energy, drive and determination to make sure you leave the mining sector better than you have found it.
“We have abundant natural resources in Bauchi that, if well harnessed and supported by the federal government, can sustain Nigeria as a whole.”
He said the state government was working to create some value chains around many mining opportunities of the state to increase its revenue generation, adding that despite the abundant natural resources in Bauchi, both the state and the federal government were not benefiting from them because of the activities of illegal miners and advocated for community engagement to overcome the situation.
He noted that his administration will continue to work with the Ministry to provide level playing ground for genuine investors to come and invest in the state for the benefit of both the state and the federal government.
Source: dailytrust.com/fg-approves-13-percent-derivation-for-revenue-generated-from-mining
The Federal Government of Nigeria has approved a 13 percent derivation to all the states of the federation for revenue generated through mining to encourage collection of mining tax in states.
Minister of State, Mines and Steel Development, Dr Uchechukwu Sampson Ogah, disclosed this when he paid a courtesy visit to Governor Bala Mohammed of Bauchi State during his tour of mining sites to interact with miners and communities.
He said the officials of the ministry were in Bauchi to seek synergy between the state and federal government as it relates to mining in line with the economic diversification agenda of President Muhammadu Buhari.
The Minister told the governor that collaboration between states and federal government as well as community leaders was imperative to smooth mining operations in Nigeria.
“Almost all the minerals are in Bauchi state.
“Bauchi is one of the key states that we are proud of in terms of deposit of mineral resources but our concern is that the resources are yet to be harnessed by the state government due to some challenges,” he acknowledged.
He said the ministry was already promoting the mineral potentials of Bauchi state to serious mining investors who are willing to invest in the state.
“We have visited the areas where the mining ore is being processed and that is why we are preaching that no mineral should be taken out of Nigeria in raw form but have to be processed so that we get all the components to add value to what we are exporting,” he added.
While responding, Governor Mohammed urged the federal government to establish a robust funding mechanism to enable genuine miners access financial interventions, adding that giving financial assistance to genuine miners will go along way towards reducing, tackling and discouraging illegal mining operations in the country.
“We have recognised your passion, energy, drive and determination to make sure you leave the mining sector better than you have found it.
“We have abundant natural resources in Bauchi that, if well harnessed and supported by the federal government, can sustain Nigeria as a whole.”
He said the state government was working to create some value chains around many mining opportunities of the state to increase its revenue generation, adding that despite the abundant natural resources in Bauchi, both the state and the federal government were not benefiting from them because of the activities of illegal miners and advocated for community engagement to overcome the situation.
He noted that his administration will continue to work with the Ministry to provide level playing ground for genuine investors to come and invest in the state for the benefit of both the state and the federal government.
Source: dailytrust.com/fg-approves-13-percent-derivation-for-revenue-generated-from-mining
