The long-standing dispute between the Osun State Government and Segilola Resources Limited has been resolved following the intervention of the Minister of Solid Minerals Development, Dr Dele Alake. This brings an end to a six-month deadlock that had seen the mining company’s operations come to a standstill.
Alake stressed the importance of a collaborative relationship between state governments and mining firms, highlighting that such partnerships are crucial for attracting investment and fostering growth in Nigeria’s mining sector.
A statement issued by the Minister’s Special Assistant on Media, Segun Tomori, confirmed the resolution after both parties met at the ministry’s headquarters in Abuja. The dispute began on September 30, 2024, when the Osun State Government sealed Segilola Resources Limited’s premises over alleged tax violations amounting to $1.9 million, as well as other operational concerns. Accusing the company of unethical practices, the state took legal action, prompting Segilola Resources Limited to obtain a court order restraining officials from interfering with its operations.
During the mediation session with Osun State Governor Ademola Adeleke and representatives of the company, Alake reiterated that the solid minerals sector is central to Nigeria’s economic diversification strategy. However, he warned that conflicting policies and strained relations between state governments and operators could undermine progress.
“In a business environment with a multiplicity of regulatory authorities, foreign investors are discouraged,” Alake stated. “Investors prefer countries where regulations are clear, streamlined, and consistent. It is trite to emphasize that solid minerals belong exclusively in the federal government’s purview, but when sub-national governments issue conflicting directives, it deters the critical investments needed to grow the mining sector.”
The minister encouraged a peaceful resolution, noting that Osun State would benefit from policies promoting industrial harmony and ease of business, which would increase revenue and attract foreign investment.
To resolve the matter, Alake had previously set up a high-level committee, led by the Director of the Ministry’s Mines Inspectorate, Ganiyu Imam, to investigate the dispute. Based on the committee’s findings, the minister convened the mediation meeting to bring the issue to a close.
Governor Adeleke welcomed the minister’s intervention, reaffirming Osun State’s commitment to enhancing its business climate while ensuring ethical standards are upheld. He expressed willingness to reach a compromise with Segilola Resources Limited to enable smooth mining operations in the state.
The governor’s Special Adviser on Mining and Mineral Resources, Prof Lukman Jimoda, outlined the core issues of the dispute, including tax claims—particularly Pay As You Earn (PAYE)—the state’s shareholding in the company, environmental concerns, and the broader economic benefits Osun should derive from Segilola’s activities.
Following deliberations and the minister’s mediation, both parties agreed to continue discussions to resolve any outstanding matters. The resolution was sealed with the formal presentation of Osun State’s shareholding certificate to Governor Adeleke by Segilola Resources Limited.
