The Federal Ministry of Solid Minerals Development in Nigeria is investigating a dispute between Osun State and Segilola Resources over tax and operational issues. Minister Dr. Dele Alake announced a fact-finding team to engage both parties while emphasising the importance of continued operations for economic stability and employment.
Nigeria’s Federal Ministry of Solid Minerals Development (FMSMD) is investigating a dispute between the Osun State Government and Segilola Resources Operating Limited regarding taxation and operational issues. The investigation aims to resolve tensions and restore harmony in the mining sector. At a recent briefing in Abuja, Minister Dr. Dele Alake announced a fact-finding team led by Permanent Secretary Dr. Mary Ogbe. The team will interact with both parties, involving representatives from the Federal Inland Revenue Service and industry associations. Dr. Alake emphasised the need for stable operations in the solid minerals sector to attract Foreign Direct Investments (FDI) and warned against any unilateral shutdown decisions by local governments. He highlighted the Federal Government’s commitment to economic growth and community development through mining activities. A halt in production could adversely affect workers and their families. Dr. Alake urged collaboration between Governor Ademola Adeleke and Thor Explorations to facilitate ongoing production during the investigation. The dispute intensified on September 30, 2024, when the Osun State Government accused Segilola of tax evasion, resulting in the sealing off of their premises. Segilola has denied these allegations.
The ongoing dispute in Nigeria’s mining sector highlights tensions between local and federal authorities concerning taxation and operational management. Segilola Resources, a mining subsidiary, faces accusations from the Osun State Government regarding tax compliance and operational practices. The involvement of the Federal Ministry of Solid Minerals Development underscores the federal nature of mining legislation in Nigeria, aiming to ensure industrial stability and foster economic growth despite local conflicts.
The investigation by Nigeria’s Federal Ministry of Solid Minerals Development into the dispute between Osun State and Segilola Resources aims to resolve conflicts over taxation and operations while ensuring uninterrupted mining activities, crucial for economic development. Both parties are urged to cooperate to avoid negative impacts on the local economy and employment.
Original Source: newscentral.africa