By Joseph ERUNKE

Anxiety mounts high in solid minerals producing states as Revenue Mobilisation, Allocation and Fiscal Commission patiently waits for Ministry of Mines and Steel Development to come up with data, determining which gets what in the solid minerals funds in its possession.

ABUJA—Those following developments in the Revenue Mobilisation, Allocation and Fiscal Commission ,RMAFC, as regards the yet-to-be-shared solid minerals money in its purse would be quick to ask what could had necessitated the Ministry of Mines and Steel Development to submit the N1.7 billion realised from the solid minerals sub-sector to the body without accompanying data, that will not only determine the areas where the natural endowments were extracted from, but benefitting areas getting their fair share of the generated money, given the fact that areas where these natural resources were extracted are entitled to 13 per cent derivation of the funds as provided for by the law.

Engr. Ellias Mbam, Chairman of Revenue Mobilisation, Allocation and Fiscal Commission, created this scenario when he disclosed in July, that over N1.7 billion revenue from solid minerals will soon be distributed among the three tiers of government, but regretted that the Ministry of Mines and Steel Development which presented the money did not accompany it with data, so as to know where the resources were gotten, a development, he noted, was hindering his commission from sharing it among the beneficiaries.

Minister of Mines and Steel Development, Arc. Mohammed Sada, defending his action during an interview with SWEETCRUDE in Abuja, said it was not an easy task to collect data in the extraction of solid minerals deposits unlike what obtained in the oil and gas sector. To this end, he said the commission would have to wait because the ministry was still collecting data with a view to determining the states where the resources were generated.

He insisted that it was difficult to get detailed data in respect of the issue as expected by the commission and assured that the ministry would soon provide the commission with necessary information that would assist it in its statutory assignment in this regard.

The ministry had presented the money to the commission which is by law, saddled with the responsibility of not only sharing such money among the federal, states and local governments, but ensure the areas where the revenue was generated get 13 percent as benefit.

Section 162 of the Nigeria Constitution empowers the National Assembly to determine the formula for the distribution of funds in the Federation Account while sub-section (2) provides that “the principle of derivation shall be constantly reflected in any approved formula as being not less than thirteen per cent of the revenue accruing to the Federation Account directly from any natural resources.”

The ability of the solid minerals producing states to benefit from 13% derivation is subject to their contributions to the Federation Account through their endowed natural resources as provided in the Constitution of Nigeria.

Under the constitutional arrangement as Mbam tried to explain, therefore, states blessed with deposits of several solid minerals would be entitled to the 13 percent derivation from the proceeds realised from such deposits, as they are statutorily entitled to it under the constitution.

States in the North are believed to be beneficiaries. Mbam softly disclosed this while hosting Nasarawa State governor, Umaru Tanko Al-makura in his office sometimes, this year. “States of the north can begin to enjoy the benefits of the 13 percent derivation principle currently being enjoyed by the 11 oil producing states if they look inward in developing the solid minerals potentials they have”, he had said, adding,“the law guarantees the disbursement of 13 percent derivation to all solid minerals producing states, like their oil producing counterparts”.

The revenues from the crude oil sales accounted for nearly 90 per cent of the monthly allocations to federal, states and local governments by the Federation Accounts Allocation Committee (FAAC).

But he regretted that the money so generated from the solid minerals cannot be shared until the Ministry of Mines and Steel Development, which generated the money came out with data to determine the states and areas where the minerals were extracted, leading to the money.

“It is the first time the solid minerals will be contributing to the federation account. We have over N1.7 billion from solid minerals waiting for distribution among the three tiers of government. What is holding us from forwarding the sharing is the 13 per cent derivation. We have asked the mines and steel to provide us the states where these revenues were generated so that they can get their 13 per cent derivation,” he had said.

Most of the oil producing states of the federation are currently enjoying the 13 per cent derivation. These states are mainly from the southern part of the country. It is equally on record that most of the states with high solid minerals deposit falls within the northern part of Nigeria.

Any revenue from natural resources from any state entitles the producing state to the derivation. To actualise the derivation principle cause for the solid minerals producing states, the Office of the Accountant General of the Federation (OAGF), opened a special account with the Central Bank of Nigeria (CBN) for the purpose of receiving deposits of revenue accruing from solid minerals.