Segilola Resources Operating Limited has continued with its gold mining business in Osun State.
This followed an interim court injunction obtained in Abuja that restrained the Osun State Government from stopping its operations.
The restraining order, issued by Justice Emeka Nwite of the Federal High Court in Abuja, was granted on October 3, 2024.
This comes amid allegations that the company was shirking in its tax responsibilities and that it was not paying attention to the impact of its operations on the environment.
The company has, however, denied complicity, arguing that the allegations were presented without any evidence.
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Initially, the Osun State Internal Revenue Service issued a tax liability of N3,250,598,513 to Segilola Resources Operating Limited, which was later revised to N98,347,105.
However, in a recent radio interview, the Special Adviser to the Governor on Mining and Mineral Resources, Prof Lukman Jimoda, declared the revised notice void, insisting that the initial liability still stands.
Legal experts have raised concerns that the Osun State Government’s actions in the Segilola mine case could harm investors confidence.
They wondered why a Magistrate Court would order the sealing of a mining site, though they lacked jurisdiction over tax matters.
Furthermore, they said mining is under the exclusive legislative list, meaning state governments have no authority to unilaterally shut down mining operations.
Meanwhile, the Federal Government, through the Ministry of Solid Minerals Development, has set up a fact-finding committee to investigate the circumstances surrounding the sealing of the mine site.
During a press briefing on Wednesday in Abuja, the Minister of Solid Minerals Development, Dele Alake, reaffirmed the Federal Government’s stance that mining falls under the exclusive legislative list.
Alake said: “I’d like to reaffirm our position that though mining companies must obey all laws and regulations guiding their operations such as payment of taxes, environmental regulations, Corporate Social Responsibility amongst others, it is our firm belief that sub-national authorities do not possess the power to arbitrarily shut down mining operations because the mining of liquid or solid minerals belongs in the exclusive list, within the purview of the Federal Government, to regulate, legislate and direct.”
Alake stressed that the Federal Government understands the peculiarities of the mining environment and the need to collaborate with sub-nationals, hence the leeway provided for states to apply for mining licenses to participate actively in the mining sector whilst taking advantage of their nominees in the Mineral Resources and Environmental Management Committee to superintend over mining activities in their domain.
He said: “MIREMCO exists in all states of the federation, and they are charged with the responsibility of ensuring compliance of mining companies with the extant regulations and laws.
“Out of the eight members that constitute MIREMCO in each state, five, including the chairman, are nominated by State Governments, hence states are already substantially involved in the regulation of mining activities, thus there should be no reason for constitutional violations.”
Inaugurating the committee, Alake declared its terms of reference to include identifying the root causes of the disagreement between the Osun State Government and SROL; reviewing contractual obligations and agreements between both parties; evaluating the impact of the company’s operations on host communities and the wider Osun State economy among others.
In her remarks, the Permanent Secretary of the Ministry, Dr. Mary Ogbe, urged states to cooperate with the Federal Government to avoid disruptions in mining operations, emphasising that such actions send wrong signals to prospective investors and can be a disincentive to the needed Foreign Direct Investment required to develop the sector.
Responding on behalf of the committee, vice-chairman and representative of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, Dr. Dele Oye, assured the minister that the panel will serve with utmost integrity in fulfilling its terms of reference.
Members of the committee include the Director of the Ministry’s Mines Inspectorate, Engr. Imam Ganiyu (Chairman); representative of NACCIMA, Dr. Dele Oye (Vice-Chairman); Pwol Dareng, Assistant Director of Organised Private Sector of the ministry (Secretary).
Other members are Director of Mines Environmental Compliance, Dr. Vivian Okono; Director of Legal, N.C Odili; representative of the Federal Inland Revenue Service; Chief of Staff to the Executive Chairman, Tayo Koleosho; and a representative of the Nigerian Investment Promotion Commission, Zubeir Abubakar.
The probe panel has seven days to submit its report.
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