Tinubu, Adeleke At Loggerhead Over Shutdown Of Segilola Mining Company

The Federal government has warned the Osun State government against shutting down Segilola Gold Company, noting that such actions may discourage investments in the country.

This position was stated by the Minister of Solid Minerals, Dele Alake via his official X handle.

He reacted to the shutting down of the mining company operations by the Osun state government over alleged tax evasion and environmental degradation.

Alake’s statement read in part; “The Ministry of Solid Minerals Development is looking into the claims and counter-claims between the Osun State Government and Thor Explorations Limited, the owners of Segilola Resources Operating Limited, regarding taxation and operational issues.”

“To address this dispute and restore industrial harmony, I have set up a fact-finding team. 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).”

He stated that the action of Osun state can lead to the country losing investment in the mining sector or even divestment by mining companies.

“I want to emphasise that the Federal Government has been actively promoting investment opportunities in the solid minerals sector around the world. It is crucial to recognize that closing down mining operations by subnational governments could jeopardize our efforts to attract Foreign Direct Investments (FDI) and may even lead to divestment by existing companies.”

“Mining falls under the exclusive legislative list, and the Ministry of Solid Minerals should be consulted before any disruptive actions are taken.”

“I remain committed to increasing productive activities across the nation to boost economic growth, create jobs, and support community development. Any halt in industrial production undermines our goals for economic prosperity, deprives workers of their income, and contributes to further hardship.”

“I urge both parties to cooperate with the fact-finding team and allow production to continue while we work through these issues.”

“It is essential that both parties pursue peace and industrial harmony for the benefit of the workers and their families who could be negatively affected by the closure of operations at the factory.” his statement read.

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Osun Defender earlier reported that following controversies surrounding the operation of Segilola Gold Company and the accusation of non-payment of taxation, the Osun State Government on Monday said it sealed the business premises of Segilola Resources Operating Limited.

This move occurred after the Osun State government obtained an order from the Osogbo Chief Magistrates Court presided over by Segun Ayilara.

The court heeded to the request of the State Government to restrain the company for various tax violations.