The Minister of Solid Minerals Development, Dr Dele Alake, has successfully mediated the long-standing dispute between the Osun State Government and Segilola Resources Limited, bringing an end to a six-month impasse.
He also stressed that a harmonious relationship between state governments and mining operators is crucial not only for attracting investment but also for advancing the nation’s mining sector.
A statement signed by the Minister’s Special Assistant on Media, Segun Tomori, disclosed the latest development after a meeting with both parties at the ministry headquarters in Abuja.
On September 30, 2024, the Osun State Government locked the premises of the mining company over various flagrant tax violations and other operational matters.
The state government had accused the company of unethical business practices and tax evasion amounting to approximately $1.9m.
In response, the company got a court order restraining the state government and its officials from interfering with the company’s mining operations.
Speaking during a mediation parley with Osun State Governor Ademola Adeleke and representatives from Segilola Resources Operating Limited at his office in Abuja, Alake emphasised that solid minerals play a central role in the federal government’s economic diversification agenda.
He noted that efforts in this regard would be jeopardized in a sector riddled with conflicting policies and strained relations between operators and state governments.
“In a business environment with a multiplicity of regulatory authorities, foreign investors are discouraged,” Alake said.
“Investors prefer countries where regulations are clear, streamlined, and consistent. It is trite to emphasize that solid minerals belong exclusively in the federal government’s purview, but when sub-national governments issue conflicting directives, it deters the critical investments needed to grow the mining sector.”
The minister urged an amicable resolution of the dispute between Osun State and SROL, highlighting that the state stands to benefit from an environment that promotes industrial harmony and eases the business climate. Such conditions would lead to increased revenue and attract foreign direct investment.
At the height of the dispute, which resulted in the closure of SROL’s operations by the state government, Alake established a high-powered committee led by Ganiyu Imam, Director of the Ministry’s Mines Inspectorate.
The committee has since submitted its findings. The minister convened this meeting based on the report of the committee to mediate, achieve resolution, and put a closure to the imbroglio.
Responding, Governor Adeleke welcomed the minister’s intervention, expressing the state’s commitment to improving the ease of doing business while ensuring that ethical standards are upheld.
He reiterated the state government’s readiness to reach a compromise with the company to ensure smooth mining operations in Osun.
The Special Adviser to the Governor on Mining and Mineral Resources, Prof Lukman Jimoda, outlined the key issues at the heart of the dispute, including disputed tax claims (particularly Pay As You Earn), the state’s shareholding in the company, environmental concerns, and the broader economic interests Osun should gain from Segilola’s operations.
After deliberations and the minister’s mediation, both parties pledged to continue discussions to resolve any outstanding issues.
The resolution culminated in the presentation of the state’s shareholding certificate to Governor Adeleke by Segilola Resources Limited.
