The Nigerian government has set up a fact-finding committee to investigate the recent closure of Segilola Resources Ltd. by the Osun State government in southwestern Nigeria.
The Minister of Solid Minerals Development, Dr. Dele Arake, announced the establishment of the committee at a press conference at the Ministry of Solid Minerals Development headquarters in Abuja, Nigeria.
He encouraged the Commission to investigate the underlying issues of the conflict and provide actionable recommendations to foster mutual understanding and promote sustainable mining practices that benefit both countries and companies. emphasized.
He said: “The Commission will investigate the nature of the conflict and develop a viable framework for resolving the conflict, with the aim of promoting mutual understanding and ensuring sustainable mining practices that benefit both countries and companies. shall provide recommendations.”
The Minister said the committee would identify the root causes of the dispute between Osun State and Segilola Resources, review the contractual agreements, assess the company’s impact on the community and economy, and safeguard the interests of the state and the community. However, the aim is to propose solutions to maintain the mine.
Dr Alake said the committee expected to submit its final report within seven days of its inauguration, and interim updates would be provided throughout the investigation.
“The committee will report directly to the Honorable Minister. Interim updates will be provided as the work progresses,” the Minister said.
Dr. Alake reiterated the federal government’s position, arguing that mining is under the exclusive legislative jurisdiction of the federal government, which means state authorities cannot unilaterally interfere with mining operations.
He stressed that mining companies must comply with laws such as tax obligations and environmental regulations, which is natural. The state does not have the power to arbitrarily suspend operations.
Dr. Arak said the federal government recognizes the unique challenges of the mining sector and will enable each state to appoint a representative to the Mineral Resources and Environmental Management Commission (MIREMCO) to apply for mining permits and oversee regulatory compliance. He explained that he aims to work with the state. .
“MIREMCO is present in every state and ensures that mining companies comply with applicable laws. State governments have appointed five of MIREMCO’s eight members, so they are in compliance with mining regulations. There is a lot of involvement,” Dr. Alake said.
In her remarks, Permanent Secretary Mary Ogbe urged state governments to cooperate with the federal government to avoid disruption to mining operations, saying such action would deter potential investors and discourage foreign direct investment in the sector. He emphasized that it could have a negative impact on
The Vice-Chairman of the Committee and President of the Nigeria Chambers of Commerce, Mines and Agriculture Association (NACCIMA), Dr. Dele Oye, assured the Minister that the Committee would work with integrity in discharging its mandate.
The committee will be chaired by the Faculty of Engineering. Imam Ganiyu and members of the ministry including Dr. Vivian Okono and NC Odili, representatives of the Federal Inland Revenue Service, Ministry of Labor and Employment, NACCIMA and the Nigeria Investment Promotion Commission (NIPC). Pwol Dareng from the Ministry of Solid Minerals Development will serve as secretary.
The initiative follows the closure of Segilola’s operations by the Osun State Government on September 30, 2024 due to allegations of tax evasion and operational malpractices which the company disputes.
Olusola Akintonde
