The Federal Government has established a committee to investigate the taxation and operational disputes between the Osun Government and Segilola Resources Operating Limited, a subsidiary of Thor Explorations Limited.
Minister of Solid Minerals Development, Dele Alake, announced the formation of the committee through a statement from his Special Assistant on Media, Segun Tomori, on Friday in Abuja. The committee aims to facilitate dialogue between both parties to resolve the dispute and restore industrial harmony.
On September 30, the Osun State Government sealed the premises of Segilola Resources Operating Limited (SROL) following a court order that permitted the confiscation of the company for serious tax violations and other operational issues. The state government accused SROL of unethical business practices and tax evasion, amounting to approximately $1.9 million.
Dr. Mary Ogbe, the ministry’s Permanent Secretary, will chair the committee, which will include 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.
Minister Alake emphasized the Federal Government’s commitment to showcasing investment opportunities in the solid minerals sector. However, he cautioned that the closure of mining operations by sub-national governments could hinder efforts to attract Foreign Direct Investment (FDI) and may even lead to divestment.
He stated: “Indiscriminate closures of mining operations by sub-nationals raise the risk of discouraging foreign direct investments and even worse, possible divestment by existing companies. Mining is on the exclusive legislative list. The ministry of solid minerals should be consulted before such disruptive actions are taken.”
Alake reaffirmed the Federal Government’s goal to enhance Nigeria’s economic landscape, create job opportunities, and support community development. He noted that interruptions in industrial production could undermine economic prosperity.
He urged both parties to cooperate with the committee and emphasized that production should continue at SROL while the issues are being resolved.
“I hereby call on Governor Ademola Adeleke of Osun State and the management of Thor Exploration Limited to sue for peace and industrial harmony in the interest of the workers. I want them to think of many dependents who may be adversely affected by closure of operations at the factory,” he said.
