Friday, April 18, 2014

Revenue Allocation boss advises states to access recource fund

Published:

As soon as a state contributes to the federation accounts, it gets 13 percent derivation fund.

The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, Elias Mbam, on Tuesday urged state governments to take advantage of the Natural Resources Development Fund, NRDF, to develop the minerals resources in their states.

Mr. Mbam, who was speaking in Kano at the Commission’s North West zonal advocacy workshop on economic diversification and enhanced revenue generation, said the requests from some states to access the fund are currently being processed.

“The Federal Government earmarked 1.68 per cent of the Federation Accounts allocation to the fund to enable states of the federation access and utilise it for the development of the mineral resources in their domains. So far, we have processed the requests from some states. But those that have not applied can take advantage of the fund to develop what they have in their backyards,” he said.

He clarified reports that the 13 per cent derivation fund provided for in the Federation Account was exclusively for oil producing community, pointing out any state of the federation with any mineral resources that are being exploited and are contributing to the revenue in the federation account is entitled to draw from the fund.

“The fund is not for oil resources alone, but for all natural resources,” he said. “If one develops a mineral resource and it contributes to the Federation Account, automatically one gets 13 per cent of the amount contributed to the Federation Account, whether it is oil or solid minerals.”

He said the North West zone had a lot of potentials in the development of agriculture, solid minerals and tourism sectors; and urged stakeholders to rise up to the challenge and utilise the funds to diversify and develop their economies.

Representatives from Kano, Katsina, Jigawa, Kebbi, Sokoto, Kaduna and Zamfara states attended the workshop.

 

(NAN)

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