The federal government has established a committee to look into the tax and operational conflicts between the Osun State Government and Segilola Resources Operating Limited (SROL), a Thor Explorations Limited subsidiary.
This was revealed in a statement released on Friday in Abuja by Dr. Dele Alake, the Minister of Solid Minerals Development, through his Special Assistant on Media, Segun Tomori. According to Alake, the committee was set up to communicate with both sides in an effort to end the conflict and bring back peace inside the workplace. The Osun State Government closed SROL’s business location on September 30 in response to a court ruling allowing it to seize the company for a number of egregious tax infractions and other operational issues.
The business was accused of unethical business activities and tax evasion by the state government. around 1.9 million US dollars in evasion. He announced that Dr Mary Ogbe, the ministry’s permanent secretary, would serve as the committee’s chair. He states that the National Association of Chambers of Commerce, Industry, Mines and Agriculture, the Ministry of Labour and Employment, and the Federal Inland Revenue Service will all be represented on the committee. He underscored that the Federal Government has been presenting investment prospects in the solid minerals industry to an international viewership.
But he issued a warning: if Sub-nationals shut down their mining operations, it might halt attempts to draw in FDI and lead to divestiture.
“Indiscriminate closures of mining operations by sub-nationals raises the risk of discouraging foreign direct investments and even worse, possible divestment by existing companies. “Mining is on the exclusive legislative list. The Ministry of Solid Minerals should be consulted before such disruptive actions are taken,” he said.
The minister reaffirmed the Federal Government’s commitment to liberalising Nigeria’s economy in order to foster community development, expand job possibilities, and accelerate economic growth. He emphasised that the objectives of economic growth may be jeopardised by any disruption in industrial activity. Alake asked all sides to work together as the committee carried out its responsibilities. He continued by saying that the corporation should be allowed to continue producing while the problems were being fixed.
I now demand that the management of Thor Exploration Limited and Governor Ademola Adeleke of Osun file a lawsuit in the best interests of the workers to promote peace and industrial harmony.
“I want them to consider a large number of dependents who could be negatively impacted by the factory’s closure,” he stated.
