Tag Archives: Non-oil

Kogi, Edo to get fresh revenue as FG approves 13% derivation for non-oil producing states

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The federal government has given approval for the implementation of the constitutionally guaranteed 13 per cent derivation from mineral revenues to deserving states.

This will lead to fresh revenues for Kogi state, Edo state, which are producing limestone in large quantities, and other Nigerian states producing non-oil minerals.

Kayode Fayemi, minister of mines and steel development, announced this on Tuesday at a 2-day workshop on Special Purpose Vehicles (SPVs) in the development of mining sector in Sokoto.

He said the workshop would encourage beneficial participation of state governments in natural resources governance.

“We have gotten approval for the implementation of the constitutionally guaranteed 13 per cent derivation for mineral revenue to states,” Fayemi said.

“This is similar to the derivation that oil-producing states are currently enjoying from the Federation Account.”

Fayemi said that the federal government was working closely to build the capacity of state governments in the structuring of the vehicles to participate in mining in their jurisdictions.

He added that this was without undermining private sector players nor discouraging mining enterprise within their states.

Aminu Tambuwal, governor of Sokoto state, said that the state would work with the federal government to formalise and manage the artisanal miners.

Tambuwal assured that the government would also work with defence and security agencies to curb illegal mining in the state.

Bello Goronyo, the state commissioner for solid minerals and natural resources development, said the programme was part of efforts by the federal and state governments to diversify their economies through  effective use of the solid mineral resources.

Goronyo said that the state government had taken a giant stride in the drive to diversify the state’s economy through exploration, mapping and identification of the locations of the minerals in the state.

He explained that the state government had given the ministry all necessary support and cooperation to enable it to discharge it’s duties without hitches

Earnings From Non-oil Exports Slide To $1.6 Billion

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Following the inability of Federal Government to revive incentives for non-oil exporters, proceeds from the sector has continued to witness a southward trend, as the nation’s earnings hit $1.6 billion from $3 billion recorded in 2013.

According to stakeholders in the sector, earnings from non-oil export can easily cross $5 billion this year and bring some relief to tackle the foreign exchange crisis prevailing in the economy, if suspended incentives are revived and other challenges addressed.

Executive Secretary of the Organised Private Sector Exporters Association (OPEXA), Jaiyeola Olarewaju in a chat with The Guardian, noted that exporters have in the last two years, been sitting on a backlog of over N100 billion worth of unutilized export certificates issued under the seal of the Ministry of Finance, urging government to honour its financial commitments in regards to extant law

“It is paradoxical that one sector that had the potential to cushion the commodity shock has been paralysed due to lack of inter-ministerial coordination. Nigeria’s non-oil exports fell from $3billion in 2013 to $1.6 billion in 2015. In 2014, the country had realised $2.7 billion in non-oil exports. In 2015, exports of cocoa, Nigeria’s largest commodity declined by 35 per cent whereas leather exports, which is the main stay of industrial economy in the North plunged by 60 per cent.

“If the EEG policy had been sustained, our non-oil exports today would have easily crossed $5 billion by 2016 and brought some relief to tackle the foreign exchange crisis prevailing in the economy. The officials have been evading the issue by alluding to perceived abuses of the grant which led to its suspension. It is classic case of throwing the baby with the bath water. The exporters relied on the extant policy and repatriated forex through the banks duly verified by the CBN”.

He explained that while diversification is being advocated as the need of the hour to generate employment by boosting production in the non-oil sector, government should clear the backlog of unutilised NDCCs and exports made in 2014 and 2015 under the extant policy to sustain about 11 million Nigerians employed directly and indirectly in the non-oil export sector.

Credit: Guardian