The Minister of Solid Minerals, Dele Alake, has cautioned state governments against shutting down mining operations without valid reasons, warning that such actions could hinder Nigeria’s efforts to attract foreign direct investment (FDI) and slow the growth of the mining industry.
He made it clear that the federal government is in charge of mining rules and advised states to speak with the Ministry of Solid Minerals before enacting any disruptive measures. In addition, Alake formed a fact-finding committee to settle the disagreement between Osun State governments and Segilola Resources Operating Limited. Concerns about taxes and business operations were raised by the Osun State government and Thor Explorations Limited, the company that owns Segilola Resources Operating Limited.
Alake’s caution was included in a statement sent to Minister Segun Tomori on Saturday in Abuja by the Special Assistant on Media. He issued a warning, saying that the federal government, not the subnationals, has the only authority over mining operations and laws. The minister gave the committee, led by Dr. Mary Ogbe, the Permanent Secretary of the Ministry, instructions to investigate the allegations and denials made by the private company and the Osun State government, involving both sides in an effort to end the conflict and bring back labour peace.
He noted that the federal government has been promoting chances for global investments in the solid minerals industry and issued a warning. that subnational companies’ shutdown of their mining operations may halt attempts to draw in FDI and spark divestiture.
“Mining operations closed by sub-nationals without cause run the risk of deterring foreign direct investment and, worse still, of existing companies divesting.” The Executive legislative list includes mining. According to Alake, before such disruptive acts are conducted, the Ministry of Solid Minerals should be consulted.
