The Federal Government has established a committee to address the ongoing taxation and operational disputes between the Osun State Government and Segilola Resources Operating Limited (SROL), a subsidiary of Thor Explorations Limited.
This was announced by the Minister of Solid Minerals Development, Dele Alake, in a statement issued on Friday in Abuja by his Special Assistant on Media, Segun Tomori.
Alake explained that the committee aims to engage both parties in order to resolve the conflict and restore industrial harmony. The dispute escalated on September 30 when the Osun State Government sealed the premises of SROL, following a court order to confiscate the company’s assets over alleged tax violations and operational issues.
The state government accused SROL of unethical business practices and tax evasion amounting to $1.9 million.
The committee, which will be chaired by the Permanent Secretary of the Ministry of Solid Minerals Development, Dr. Mary Ogbe, includes representatives from the Federal Inland Revenue Service, the Ministry of Labour and Employment, and the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).
Alake emphasized the Federal Government’s efforts to promote investment opportunities in Nigeria’s solid minerals sector and cautioned that the closure of mining operations by state governments could jeopardize these initiatives. He warned that such actions might deter foreign direct investment (FDI) and could even lead to the withdrawal of existing investors.
“Indiscriminate closures of mining operations by sub-nationals raise the risk of discouraging foreign direct investments and, worse, possible divestment by existing companies,” the minister said, noting that mining falls under the exclusive legislative purview of the Federal Government. He urged state governments to consult with the Ministry of Solid Minerals before taking actions that could disrupt mining activities.
Alake reiterated the Federal Government’s commitment to boosting economic growth, creating employment, and fostering community development through the expansion of Nigeria’s mining sector. He stressed that interruptions to industrial production could threaten the country’s economic goals.
The minister called on Osun State Governor, Ademola Adeleke, and the management of Thor Exploration Limited to cooperate with the committee for the sake of peace and industrial stability. He also urged that production at the company should be allowed to continue during the resolution process.
“I appeal to Governor Adeleke and the management of Thor Exploration Limited to prioritize peace and industrial harmony in the interest of the workers and their dependents, who may be negatively affected by the closure of operations,” Alake said.
