The Federal Government has resolved the rift between the Osun State Government and Segilola Resources Operating Limited over mining operations in the state.
The Minister of Solid Minerals Development, Dr. Dele Alake, resolved the differences that had been ongoing for over one year on Tuesday.
Speaking during a mediation parley with the Osun State Governor, Ademola Adeleke, and representatives from Segilola Resources Operating Limited in his office in Abuja, Alake emphasised that solid minerals play a central role in the Federal Government’s economic diversification agenda.
He noted that efforts in this regard would be jeopardised in a sector riddled with conflicting policies and strained relations between operators and state governments.
He said: “In a business environment with a multiplicity of regulatory authorities, foreign investors are discouraged.
“Investors prefer countries where regulations are clear, streamlined and consistent.
“It is trite to emphasise 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.”
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The minister urged an amicable resolution of the dispute between Osun State and SROL, highlighting that the state stands to benefit from an environment that promotes industrial harmony and eases the business climate.
Such conditions would lead to increased revenue and attract foreign direct investment.
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 headed by Engr. Ganiyu Imam, Director of the Ministry’s Mines Inspectorate.
The committee has since submitted its findings.
Alake convened the meeting based on the report of the committee to mediate, achieve resolution, and put a closure to the imbroglio.
Adeleke welcomed the minister’s intervention, expressing the state’s commitment to improving the ease of doing business while ensuring that ethical standards are upheld.
He reiterated the state government’s readiness to reach a compromise with the company to ensure smooth mining operations in Osun State.
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 broader economic interests Osun State should gain from Segilola’s operations.
After deliberations and the minister’s mediation, both parties pledged 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 meeting was attended by the spokesman of Governor Adeleke, Olawale Rasheed, and other Osun State Government officials.
Segilola was represented by the MD/CEO, Segun Lawson; Country Director, Austin Menegbo; Non-Executive Directors: Folorunsho Adeoye and Kayode Aderinokun.
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