The Federal Ministry of Solid Minerals Development (FMSMD) has launched an investigation into the disputes between Osun State Government and Segilola Resources Operating Limited, a subsidiary of Thor Explorations Limited, regarding taxation and operational issues.
The Minister of Solid Minerals Development, Dr. Dele Alake stated this during a press briefing at the Ministry’s headquarters in Abuja, Nigeria.
Dr. Alake said the move aims to resolve the conflict and restore industrial harmony.
The Minister revealed that a fact-finding team, led by the Permanent Secretary of the Ministry, Dr. Mary Ogbe has been established to engage with both parties.
He added that the team comprises 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 Minister observed that the Federal Government has been marketing opportunities for investments in the solid minerals sector across the world and cautioned that closure of mining operations by subnationals could abort efforts to attract Foreign Direct Investments (FDI) and provoke divestment.
“Indiscriminate closures of mining operations by subnationals raises the risk of discouraging foreign direct investments and even worse, possible divestment by existing companies. Mining is on the exclusive legislative list. The Ministry of Solid Minerals should be consulted before such disruptive actions are taken.” Dr. Alake asserted.
The Minister reiterated the Federal Government’s interest in raising the tempo of productive activities nationwide to boost economic growth, increase employment and community development.
Dr. Alake stressed that any cessation of industrial production will undermine the goals of economic prosperity, deny workers the opportunity to earn income, and further contribute to adversity.
He called on both parties to co-operate with the fact-finding team and allow production to continue while the issues are resolved.
“ I hereby call on His Excellency, the Governor of Osun State, Sen. Ademola Adeleke and the management of Thor Exploration Limited to sue for peace and industrial harmony in the interest of the workers and their dependents who may be adversely affected by closure of operations at the factory.” Dr.Alake appealed.
Recall On September 30, 2024, Osun State Government sealed off Segilola’s premises due to alleged tax evasion and operational issues .
The government claims Segilola failed to disclose employee information and obstructed tax processes, but Segilola disputes these allegations .
Olusola Akintonde
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