The Federal Government of Nigeria has announced the establishment of a committee to investigate the ongoing taxation and operational disputes between the Osun State Government and Segilola Resources Operating Limited (SROL), a subsidiary of Thor Explorations Limited. This development follows the recent shutdown of SROL’s operations by the Osun State Government due to alleged tax evasion.
On September 30, 2024, the Osun State Government, acting on a court order, sealed the business premises of SROL. The state government accused the company of unethical business practices and tax evasion amounting to approximately $1.9 million. The closure was executed by court bailiffs with the support of armed security personnel, including the Police Joint Task Force and Amotekun Security Corps.
In response, the Federal Government, through the Minister of Solid Minerals Development, Dr. Dele Alake, has expressed concerns over the potential negative impact of such closures on foreign direct investment (FDI) and the overall economic growth of the country. Dr. Alake emphasized that mining operations fall under the exclusive legislative list, and as such, the Ministry of Solid Minerals should be consulted before any disruptive actions are taken.
“The indiscriminate closure of mining operations by sub-national entities raises the risk of discouraging foreign direct investments and could lead to divestment by existing companies,” Dr. Alake stated. “We are committed to resolving this dispute amicably and ensuring that industrial harmony is restored.”
The newly formed committee, chaired by Dr. Mary Ogbe, Permanent Secretary of the Ministry of Solid Minerals Development, includes representatives from the Federal Inland Revenue Service, Ministry of Labour and Employment, and the National Association of Chambers of Commerce, Industry, Mines and Agriculture. The committee’s mandate is to engage both parties and find a resolution that allows for the continuation of production at SROL while addressing the tax issues.
Dr. Alake called on Governor Ademola Adeleke of Osun State and the management of Thor Explorations Limited to cooperate with the committee and prioritize the welfare of the workers and the economic interests of the community.
“We urge both parties to work towards a peaceful resolution in the interest of the workers and the many dependents who may be adversely affected by the closure of operations,” Dr. Alake added.
The Federal Government remains dedicated to showcasing Nigeria’s investment opportunities in the solid minerals sector and fostering an environment conducive to economic growth and community development.