The Nigerian Federal Ministry of Solid Minerals Development is investigating a dispute between the Osun State Government and Segilola Resources over tax allegations and operational issues, aiming to resolve the conflict and maintain industrial harmony. The Minister has warned that halting production could adversely affect economic growth and urged cooperation between the involved parties during the investigation.
The Nigerian Federal Ministry of Solid Minerals Development (FMSMD) has launched an investigation into the conflict between the Osun State Government and Segilola Resources Operating Limited, a subsidiary of Thor Explorations Limited, concerning taxation and operational issues. This initiative aims to address the disputes and restore stability in the industrial sector. At a press conference in Abuja, Dr. Dele Alake, the Minister of Solid Minerals Development, announced the establishment of a fact-finding team headed by Permanent Secretary Dr. Mary Ogbe. The team will engage with both parties involved, comprising representatives from the Federal Inland Revenue Service, Ministry of Labour and Employment, and the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA). Dr. Alake highlighted the necessity of ensuring smooth operations within the solid minerals sector to attract Foreign Direct Investment (FDI) and avoid divestment. He reiterated that mining falls under the exclusive jurisdiction of the Federal Government, which mandates collaboration with the Ministry before any operational halts occur. The Minister stressed that halting production could negatively impact economic growth, job creation, and community development, affecting a wider range of stakeholders including workers and their families. He appealed to Osun State Governor Senator Ademola Adeleke and Thor Explorations’ management for cooperation with the fact-finding mission, warning that an extended shutdown could have detrimental effects on the economy. The dispute particularly intensified on September 30, 2024, when the Osun State Government closed Segilola Resources’ facilities due to alleged tax evasion and operational discrepancies. Segilola has rejected these accusations.
The investigation by the FMSMD comes amid a serious dispute involving the Osun State Government and Segilola Resources, primarily revolving around allegations of tax evasion and operational misconduct. This situation signifies the ongoing challenges within Nigeria’s mining sector, where taxation and operational compliance can lead to significant legal and economic consequences. The formation of a specialized team to investigate these issues indicates a proactive approach by the Nigerian government to mitigate potential long-term impacts on investment and community welfare.
The Nigerian Ministry of Solid Minerals is working to mediate a dispute between the Osun State Government and Segilola Resources regarding tax and operational disputes, stressing the importance of maintaining industrial stability. The outcome of this investigation may affect future investment in the solid minerals sector and the welfare of workers in the region.
Original Source: newscentral.africa