Segilola Resources Operating Limited (SROL) has proceeded with its gold mining operations after a Federal High Court in Abuja last week granted an interim injunction restraining the Osun State Government and its officials from interfering with the company’s mining operations.
Justice Emeka Nwite issued the order on October 3, 2024.
This comes amid allegations against the company regarding tax liabilities and environmental concerns, accusations that SROL has denied.
The company argues that the allegations have been presented without any evidence.
Initially, the Osun State Internal Revenue Service (OSIRS) issued a tax liability of ₦3,250,598,513 to Segilola Resources Operating Limited, which was later revised to ₦98,347,105. However, in a recent radio interview, the governor’s special adviser 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 investor confidence. They wondered why a magistrate court would order the sealing of a mining site, even though magistrate courts lack 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, recently established a fact-finding committee to investigate the circumstances surrounding the sealing of the mine site.
During a press briefing on Wednesday in Abuja, minister of solid minerals development Dele Alake reaffirmed the Federal Government’s stance that mining falls under the exclusive legislative list.
“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 (CSR) 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 (MIREMCO) 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 (8) members that constitute MIREMCO in each state, five (5) 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,” Mr Alake added.
Inaugurating the committee, Alake declared its terms of reference (ToR) 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 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 (FDI) 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 (NACCIMA) 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 (OPS) of the ministry (secretary).
Other members are director of mines environmental compliance (MEC), Dr. Vivian Okono; director of legal, N.C Odili; representative of the Federal Inland Revenue Service (FIRS), chief of staff to the executive chairman, Tayo Koleosho; and a representative of the Nigerian Investment Promotion Commission (NIPC), Zubeir Abubakar.
The probe panel has seven days to submit its report.
