A Review of the Nigerian Energy Industry

Nigeria’s solid minerals-producing states to draw from derivation funds

26 September 2012, Sweetcrude, ABUJA –NIGERIA’S solid minerals producing states may soon begin to benefit  from the country’s 13 per cent derivation funds, now reserved solely for oil-bearing states.

Mr Timothy Odaa, chairman of the Commissioners of Finance Forum, dropped the hints in Abuja, saying the government was working hard to make this happen.
According to him, the belief is that the development would encourage the 36 states to diversify their economy and explore solid minerals opportunities that abound across the country.
“Almost every state in the country has some solid minerals or oil buried in their land and so if that is done, it would be an incentive because we have seen dwindling economy all over the world.
“You have heard contributions being made and what is on ground now is that solid minerals should also be included as the basis for derivation and the essence is to encourage states,” he said.
He maintained that the position of government is that every state must beef up its internally generated revenue, noting that the recent N260.512 billion drop in national revenue from oil in August was a pointer to the need for every state to seek to expand revenue sources.
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