In a significant development, the Minister of Solid Minerals Development, Dr. Dele Alake, has successfully mediated the long-standing dispute between the Osun State Government and Segilola Resources Limited, bringing an end to a six-month impasse. This resolution was reached after a meeting with both parties at the ministry headquarters in Abuja, marking a crucial step towards promoting industrial harmony and easing the business climate in Nigeria’s mining sector.
The dispute between the Osun State Government and Segilola Resources Limited began on September 30, 2024, when the state government locked the premises of the mining company over 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 $1.9 million.
The dispute centered on several key issues, including:
- – Disputed Tax Claims: The company was accused of tax evasion amounting to approximately $1.9 million.
– State’s Shareholding: The state government had a shareholding in the company, which was a point of contention.
– Environmental Concerns: The state government had raised concerns about the environmental impact of the mining operations.
– Economic Interests: The state government sought to ensure that the mining operations would benefit the local economy.
Dr. Alake’s intervention was crucial in resolving the dispute. The minister emphasized the importance of a harmonious relationship between state governments and mining operators, stressing that solid minerals play a central role in the federal government’s economic diversification agenda [1]. He noted that efforts to advance the mining sector would be jeopardized by conflicting policies and strained relations between operators and state governments.
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 Ademola Adeleke by Segilola Resources Limited [1]. This marked a significant step towards promoting cooperation and understanding between the state government and the mining company.
The resolution of the dispute has significant implications and benefits for the mining sector in Nigeria. Some of the key benefits include:
- Promoting Industrial Harmony*l: The resolution promotes industrial harmony and eases the business climate, making it more attractive for investors.
- Increased Revenue: The resolution is expected to lead to increased revenue for the state government and the mining company.
- Job Creation: The resolution is likely to lead to job creation and economic growth in the local community.
Environmental Sustainability: The resolution emphasizes the importance of environmental sustainability and responsible mining practices.
The successful mediation of the dispute between the Osun State Government and Segilola Resources Limited by Dr. Dele Alake marks a significant milestone in promoting industrial harmony and easing the business climate in Nigeria’s mining sector. The resolution has significant implications and benefits for the sector, including promoting industrial harmony, increasing revenue, creating jobs, and emphasizing environmental sustainability.