The Senate on Tuesday opposed a proposal for implementation of 13 per cent derivation formula to solid mineral producing states.<\/p>\n
The proposal was patterned after the 13 percent oil derivation that go to oil producing states.<\/p>\n
They also stopped the probe of federal government’s Natural Resources Development Fund.<\/p>\n
The upper chamber nonetheless mandated its Committee on Solid Minerals to carry out a holistic assessment of solid minerals development in the country.<\/p>\n
The resolutions of the senate was sequel to a motion sponsored by Sen. Abu Ibrahim (Katsina\/CPC) on the development of solid minerals sector as a panacea to the bankruptcy of States of the federation and creation of jobs in Nigeria.<\/p>\n
Presiding on the motion, Deputy Senate President, Sen. Ike Ekweremadu highlighted the importance of fiscal federalism to allow States develop mineral resources.<\/p>\n
He bemoaned the dependency of states on allocations from the federal government for their survival.<\/p>\n
“In a situation where the federal government appropriated everything to themselves and then feeding the rest of the States like a baby is really not sustainable.<\/p>\n
“So, it is important that we begin to think about it on how to ensure that we will run our federal system in the best way as others are running their federal system.<\/p>\n
“It is important at this stage for us to find a way engaging this subject in such a way that we will be able to have what is actually called a true federalism.<\/p>\n
“This will enable every part of Nigeria to exploit the resources that God has given to them and contribute to the centre which is the standard practice in most federal.” The Senate President said.<\/p>\n
However, Sen. Ahmed Lawan while contributing to the debate, said the federal government has failed to account for the funds sourced through the Natural Resources Development Fund (NRDF).<\/p>\n
Lawan lamented funds from the sector was poorly utilised.<\/p>\n
“About N873 billion was deposited in the NRDF account but sadly, nobody can account for this money.\u00a0 Substantial part of the amount has been used to service other sectors of the economy.<\/p>\n
“I believe solid minerals sector can do more than oil in the provision of jobs and infrastructure. We must do something to salvage our economy.\u2019\u2019 He added.<\/p>\n
Sen. Olubunmi Adetumbi\u00a0 believes the federal government should be held responsible for abusing the funds meant for the development of solid minerals.<\/p>\n
He said “the agency of government responsible for development of solid minerals is responsible for the abuse of this fund. The greatest saboteur to this policy is the federal government itself.<\/p>\n
“A huge portion of the fund has been used to service deficit budgets and not to develop the solid minerals.<\/p>\n
“Federal government should lead by example. It must live up to its promises by accounting for the N783 billion in the last ten years.”<\/p>\n
Sen. Smart Adeyemi blasted States Governors for neglecting to tap the enormous mineral resources in their States but rather settling for federal allocation.<\/p>\n
“It\u2019s the lack of vision and commitment of State Governors who depend on federal allocations.<\/p>\n
“We must change our economic policies and diversify to be able to create jobs, \u2018\u2019he said.<\/p>\n
Sen. Ita Enang\u00a0 advocated total compliance with existing laws guiding the exploration of the solid minerals in the country.<\/p>\n
He alleged that some State Governors denying the federal government revenue under the guise the guise of illegal mining.<\/p>\n
“It\u2019s time that we allowed true federalism in this country. Some States are exploring solid minerals and keeping l the proceeds under the excuse that it was illegal mining,\u2019\u2019 he said.<\/p>\n
Sen. Ayogu Eze\u00a0 charged the federal government to own up to its responsibility of providing the necessary funding to enable States to exploit the solid minerals.<\/p>\n
“If the owners of the mineral resources are allowed to explore and pay royalty to the federal government, all will be well with the States.<\/p>\n
“It\u2019s a shame on the part of this country that we make such provisions and they are not utilized. There\u2019s a need for the federal government to become responsive to the development of solid minerals,\u2019\u2019 he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Senate on Tuesday opposed a proposal for implementation of 13 per cent derivation formula to solid mineral producing states. The proposal was patterned after the 13 percent oil derivation…<\/p>\n","protected":false},"author":1,"featured_media":7726,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-9840","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\n