BY AKUDORO GLORIA
The Minister of Solid Minerals Development, Dr. Dele Alake has emphasized the importance of a harmonious relationship between state governments and mining operators for attracting investment and advancing the mining sector.
Alake who spoke during a mediation meeting with Osun State Governor, Ademola Adeleke, and representatives from Segilola Resources Operating Limited (SROL) in his office in Abuja, underscored the role of solid minerals in the federal government’s economic diversification agenda.
Recalled that the Osun State Government shutdown the SROL firm located in Iperindo community of Atakumosa East Local Government Area, following a court order, for violation of Tax Audit on Payee, Withholding Taxes and Development Levy, from 2019 to 2023 until the due sum is fully liquidated into Osun State Government Account.
On the other hand, the management of SROL refuted the allegations of tax evasion among others, and maintained that it has constantly operated as a law-abiding and transparent corporate entity diligently fulfilling all its tax obligations.
However, in a statement issued on Tuesday by Segun Tomori, Special Adviser to the Minister on Media, the Minister pointed out that conflicting policies and strained relations between operators and state government could jeopardize efforts within the mining sector.
He noted that foreign investors are discouraged by a business environment with multiplicity of regulatory authorities and prefers countries with clear, streamlined and consistent regulations.
His words: “In a business environment with multiplicity of regulatory authorities, foreign investors are discouraged. Investors prefer countries where regulations are clear, streamlined and consistent.
“It is trite to emphasize that solid minerals belong exclusively in the federal government’s purview but when sub national governments issue conflicting directives, it deters the critical investments needed to grow the mining sector.”
The Minister called for an amicable resolution of the dispute between Osun State and SROL, emphasizing that the state stands to benefit from an environment that promotes industrial harmony and eases the business climate. He also added that such conditions would lead to increased revenue and attract foreign direct investment (FDI).
Although, at the height of the dispute, which resulted in the closure of SROL’s operations by the state government, Alake established a high-powered committee led by Engr. Ganiyu Imam, Director of the Ministry’s Mines Inspectorate. The committee has since submitted its findings. The Minister convened this meeting based on the report of the committee to mediate, achieve resolution and put a closure to the imbroglio.
On his part, Governor Adeleke welcomed the Minister’s intervention and expressed the state’s commitment to improving the ease of doing business while ensuring that ethical standards are upheld.
He reaffirmed the state government’s readiness to reach a compromise with the company to ensure smooth mining operations in Osun.
Also, Prof. Lukman Jimoda, Special Adviser to the Governor on Mining and Mineral Resources, outlined the key issues at the heart of the dispute, including disputed tax claims (particularly Pay As You Earn, PAYE), the state’s shareholding in the company, environmental concerns, and the broader economic interests Osun should gain from Segilola’s operations.
The meeting ended with both parties pledging to continue discussions to resolve any outstanding issues. The resolution culminated in the presentation of the state’s shareholding certificate to Governor Adeleke by Segilola Resources Limited.
The crucial meeting was attended by Governor Adeleke, Prof. Jimoda; Special Adviser to the Governor on Media and Publicity, Olawale Rasheed, and other government officials. Segilola was represented by MD/CEO, Segun Lawson; Country Director, Austin Menegbo; Non-Executive Directors Folorunsho Adeoye and Kayode Aderinokun.