Segilola Vs Osun Govt; FG moves ro resolve dispute

The Minister of Solid Minerals Development, Dr Dele Alake, has assured of his ministry’s commitment to resolving the ongoing dispute between Osun State Government and Segilola Resources Operating Limited.

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This was as the minister inaugurated a fact-finding team to probe reasons for the face-off between the sub-national and the mining company.

It will be recalled that the minister last week announced the constitution of a fact-finding committee to look into the circumstances that led to the sealing off of the gold mining company on account of alleged tax evasion and other sundry infractions.

On September 30, the state government locked the premises of the mining company over for various flagrant tax violations and other operational matters.

The state government had accused the company of unethical business practices, and tax evasion amounting to approximately $1.9m.

In response, the company got a court order restraining the Osun State Government and its officials from interfering with the company’s mining operations.

At a press briefing at the ministry headquarters on Wednesday in Abuja, Dr Alake restated the position of the federal government that mining belongs to the exclusive legislative list and, as such, sub-nationals have no powers to unilaterally disrupt mining operations across the country.

“I would 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, and 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,” the minister asserted.

The Minister 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.

“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,” Alake added.

Inaugurating the committee, Alake declared its Terms of Reference to include identifying the root causes of the disagreement between the Osun state government and Segilola Resources Operating Limited, 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 amongst others.

In her remarks, the Permanent Secretary, 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, the 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, Mines Inspectorate of the ministry, Engr. Imam Ganiyu (Chairman); Representative of NACCIMA, Dr. Dele Oye (Vice-Chairman), Mr. Pwol Dareng, Asst. Director, Organised Private Sector of the Ministry (Secretary). Other members are the Director of Mines Environmental Compliance, Dr Vivian Okono; Director of Legal, Mrs N.C Odili; Representative of Federal Inland Revenue Service, Chief of Staff to the Executive Chairman, Tayo Koleosho; Rep. of Nigerian Investment Promotion Commission, Zubeir S. Abubakar.

The probe panel has seven days to submit its report.