The Nigerian government has issued a warning to the Osun State government regarding its decision to shut down Segilola Gold Company, emphasizing that such actions could deter investment in the nation. This warning came from Dele Alake, the Minister of Solid Minerals, via his official X account.
His comments follow the Osun State government’s recent closure of the mining company’s operations, which they allege resulted from tax evasion and environmental concerns.
Alake stated, “The Ministry of Solid Minerals Development is currently investigating the claims and counterclaims involving the Osun State Government and Thor Explorations Limited, the parent company of Segilola Resources Operating Limited.” He added that a fact-finding team has been established to address the dispute and restore industrial harmony. This team will be led by Dr. Mary Ogbe, the Permanent Secretary of the Ministry, and will include representatives from the Federal Inland Revenue Service (FIRS), the Ministry of Labour and Employment, and the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).
The Minister cautioned that the actions taken by the Osun State government could result in a loss of investments in the mining sector or even cause existing mining companies to withdraw their operations. “I want to emphasize that the Federal Government has been actively promoting investment opportunities in the solid minerals sector globally. It’s crucial to understand that shutting down mining operations by state governments could undermine our efforts to attract Foreign Direct Investments (FDI) and may lead to divestment by current companies,” he stated.
Alake also reminded that mining falls under the exclusive legislative list, suggesting that the Ministry of Solid Minerals should be consulted before any disruptive actions are initiated.
He expressed his commitment to enhancing productive activities nationwide to foster economic growth, create jobs, and support community development. “Any interruption in industrial production hampers our economic goals, denies workers their income, and exacerbates hardship,” he remarked.
Alake urged both the Osun State government and Segilola Resources Operating Limited to collaborate with the fact-finding team and allow production to continue while resolving the issues at hand. “It is essential for both parties to pursue peace and industrial harmony for the benefit of workers and their families who may be adversely affected by the closure,” he concluded.
In related developments, SaharaReporters previously reported that the Osun State government had sealed Segilola Resources Operating Limited’s business premises after obtaining an order from the Osogbo Chief Magistrates Court. This action followed accusations of tax violations against the company.
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