LONG THROAT: Northern elders reject FG's 13% derivation on solid minerals

      In another twist to the debate over the current revenue allocation formula, northern leaders have rejected the move by the Federal Government to pay 13 per cent derivation funds to host states of solid minerals in the country.

Last month, speaking on behalf of his colleagues, the Chairman of the Northern Governors Forum and the Governor of Niger State, Babangida Aliyu, called for a review of the revenue allocation formula 'to reflect current realities.'

The demand of the 19 northern governors, which was re-echoed by several leaders and groups in the region, stated that the current revenue allocation formula was unfair to northern states and that the oil-producing states that receive 13 per cent derivation funds were getting more money than they had the capacity to execute.

However, reacting to this recent move to placate the North, the Convener of the Coalition of Northern Leaders, Academics, Professionals and Businessmen, Dr. Junaid Mohammed, described it as an abuse of the Constitution and an insult to the North.

Mohammed said what they were demanding was a total review of the revenue allocation law and not “the shortcut,” employed to appease the North.

“As far as we are concerned, the current revenue allocation formula in the Constitution is illegal and the FG does not have the right to alter it, without a proper constitutional amendment.

“So the 13 per cent derivation for solid-minerals producing states is illegal and an abuse of the constitution. If government thinks that the only way to appease political opponents is to abuse the constitution, then it is unfortunate.

“There is no shortcut to amending that law. As far as we are concerned the entire revenue allocation law must be quashed and new submissions made to the National Assembly,” he said.

Mohammed added that it was not proper for the government to approve 13 per cent derivation on solid minerals when actual mining and revenue generation had not started.

“It is not even sensible as an economic move. At the current level of exploitation, the solid minerals in the North are non-existent. You cannot give us 13 per cent derivation on something that does not exist. And if the government or anybody thinks he can appease the North by this kind of insult, then the person must be a fool or thinks we are fools,” he said.

But the Chairman, Revenue Mobilisation, Allocation and Fiscal Commission, Mr. Elias Mbam, reportedly said the 13 per cent derivation on solid minerals which will commence next month was constitutional.

“The payment is a constitutional matter, which states that derivation should not be less than 13 per cent and derivation is not limited to oil and gas. This also includes all other mineral resources.”

The most recent report of the Nigerian Geological Survey shows that Nigeria has over 40 solid mineral resources and they are mostly found in the North.

The list showed that Gold had been discovered in Kano, Kaduna, Edo, Kebbi, Kwara, Ogun, Osun, Zamfara states and the Federal Capital Territory; Tantalite in Bauchi, Ekiti, FCT, Kaduna, Kwara, Nasarawa, Osun, Oyo and Taraba states; while gemstones have been located in Bauchi, Borno, Cross River, Ekiti, Kano, Kebbi, Kwara, Osun, Oyo, Plateau and Zamfara states.

However some solid minerals were found only in the North. They include Silver in Nasarawa State, Uranium in Jigawa State, Copper in Bauchi, Marl in Kano and Yobe states, Chromite in Zamfara, Trona in Gombe, Jigawa and Yobe states, Zinc in Kano and Plateau states, Magnesite in Adamawa state and Diatomite in Yobe State.


http://odili.net/news/source/2012/mar/25/838.html

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Posted: at 28-03-2012 03:53 PM (12 years ago) | Gistmaniac

Your comment is 'ILLEGAL' three.

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Posted: at 28-03-2012 05:00 PM (12 years ago) | Hero

Just stopped by to say Hi

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Posted: at 28-03-2012 06:05 PM (12 years ago) | Upcoming

Dey don turn glutton abi

Posted: at 28-03-2012 06:25 PM (12 years ago) | Gistmaniac

FG is over generous sef. 13% is on d high side. Something like 6% wld hv been very ok

Posted: at 28-03-2012 06:44 PM (12 years ago) | Hero

FG is over generous sef. 13% is on d high side. Something like 6% wld hv been very ok

Posted: at 28-03-2012 06:50 PM (12 years ago) | Hero

 

Posted: at 28-03-2012 06:59 PM (12 years ago) | Gistmaniac

I3% is not enough, Then i think that is greed...

Posted: at 28-03-2012 07:10 PM (12 years ago) | Upcoming

so what exactly do they want???................1% , 10%, or 100%. See how greedy they ar, dat mins if they were the ones that have Oil other states will be begging them 4 funds

Posted: at 28-03-2012 08:11 PM (12 years ago) | Gistmaniac

They are trying to tell you that they need not even 0.0000001%. You can go and drink your oil we don't need it.

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Posted: at 28-03-2012 08:23 PM (12 years ago) | Hero