FDI: FG warns Osun Government against jeopardizing investments by closing gold mining site
The Federal Ministry of Solid Minerals Development has cautioned the Osun State Government against jeopardizing the Federal Government’s efforts to attract Foreign Direct Investments by closing down a mining site.
The Minister of Solid Minerals Development, Dr. Dele Alake, disclosed this on Friday, October 5, 2024, via his X page.
Alake is reacting to claims and counterclaims between the Osun State Government and Thor Explorations Limited, the owner of Segilola Resources Operating Limited (SROL), regarding alleged taxation and operational issues.
What Transpired
On September 30, 2024, the Osun State Government reportedly sealed the business premises of SROL, insisting that a court ordered the state to confiscate the company for “flagrant tax violations” and other operational matters.
The News Agency of Nigeria reports that the state government had charged the company with unethical business practices and tax evasion amounting to about 1.9 million US dollars.
As noted on the company’s website, it operates a gold project located in Osun State, Nigeria.
The Segilola Gold Mine has reportedly completed two full years of production, with a total gold production of 98,006 ounces in 2022 and 84,609 ounces in the 2023 calendar year, and is targeting 95,000-100,000 ounces of gold in the 2024 calendar year.
What FG is Saying
Alake stated that to address the dispute and restore industrial harmony, he has set up a fact-finding team comprised of Dr. Mary Ogbe, the Permanent Secretary of the Ministry, 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).
“I want to emphasize 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,” Alake stated.
He stressed that mining falls under the exclusive legislative list and that the Ministry of Solid Minerals should be consulted before any disruptive actions by any state are taken against an investor.
“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,” he added.
He highlighted that it is essential for both parties to 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.
