The Federal Government of Nigeria has issued a stern warning to the Osun State Government, urging them not to jeopardize investments by closing down a gold mining site.
This comes after the Osun State Government sealed the business premises of Segilola Resources Operating Limited (SROL), a gold mining company, due to alleged tax violations and operational issues.
The Minister of Solid Minerals Development, Dr. Dele Alake, disclosed this on Friday, via his X page.
According to Dr. Dele Alake, Minister of Solid Minerals Development, the Federal Government has been actively promoting investment opportunities in the solid minerals sector globally, saying Closing down mining operations could undermine these efforts and deter foreign direct investments.
Background of the Dispute
The Osun State Government had accused SROL of unethical business practices and tax evasion amounting to $1.9 million.
The company operates the Segilola Gold Mine, which has completed two years of production, with a total gold production of 98,006 ounces in 2022 and 84,609 ounces in 2023.
Federal Government’s Response
To address the dispute, Dr. Alake has set up a fact-finding team comprising representatives from various government agencies.
“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.
