Minister of Solid Minerals Development, Dr. Dele Alake, Takes Steps to Resolve Osun State Mining Dispute
- Fact-Finding Team Established to Investigate Segilola Resources Operating Limited Conflict
Dr. Dele Alake, Nigeria’s Minister of Solid Minerals Development, has pledged his ministry’s commitment to resolving the ongoing dispute between the Osun State Government and Segilola Resources Operating Limited. This announcement follows the formation of a fact-finding team tasked with investigating the underlying causes of the conflict between the state and the mining company.
- Background of the Dispute
The dispute escalated when the Osun State Government sealed off the premises of Segilola Resources on September 30 due to alleged tax evasion and other operational violations. The state accused the company of unethical business practices, claiming outstanding tax liabilities amounting to approximately $1.9 million. In response, Segilola Resources obtained a court order preventing the state from interfering with its mining operations.
- Minister’s Position on Mining Regulation
At a press briefing held at the ministry headquarters in Abuja, Minister Alake reiterated that mining operations fall under the exclusive legislative authority of the federal government. He emphasized that sub-national governments lack the power to unilaterally shut down mining operations, asserting, “Mining companies must adhere to all laws and regulations, including tax payments and environmental standards, but state authorities cannot arbitrarily disrupt operations.”
- Collaboration Between Federal and State Authorities
Dr. Alake highlighted the importance of collaboration between federal and state governments within the mining sector. He noted that states have the opportunity to apply for mining licenses and participate actively in the industry through their representatives on the Mineral Resources and Environmental Management Committee (MIREMCO). This committee, present in all states, is responsible for ensuring compliance with mining regulations.
- Objectives of the Fact-Finding Committee
During the inauguration of the committee, the minister outlined its Terms of Reference, which include identifying the root causes of the disagreement, reviewing contractual obligations between the parties, and evaluating the impact of the company’s operations on local communities and the economy of Osun State.
- Call for Cooperation to Attract Investment
Permanent Secretary Dr. Mary Ogbe emphasized the need for state governments to cooperate with the federal government to avoid disruptions in mining operations. She warned that such actions could deter potential investors and hinder the foreign direct investment necessary for the sector’s development.
- Commitment to Integrity
Responding on behalf of the committee, Dr. Dele Oye, Vice-Chairman and representative of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, assured the minister that the panel would approach its work with integrity and dedication. The committee is tasked with submitting its report within seven days.
The establishment of the fact-finding team signifies the federal government’s proactive approach to addressing conflicts in the mining sector. By fostering collaboration between state and federal authorities, the aim is to create a stable and conducive environment for mining operations, ultimately enhancing Nigeria’s economic viability in the solid minerals sector.
