The Osun State Government has stated its determination to recover N3.2 billion in unpaid taxes from the Federal Government, which has yet to remit the sum to the state’s coffers. This announcement was made on Thursday by the state government, which warned that it would take all necessary actions to retrieve the owed amount.
The unpaid taxes are tied to SEGILOLA, a federal mining company located in the state. At a press conference in Osogbo, the Special Adviser to the Osun State Governor on Mining and Natural Resources, Prof. Lukman Jimoda, criticised the company’s actions, calling them unethical.
Jimoda expressed concerns over the operations of the Segilola Gold Project, managed by subsidiaries of Thor Explorations Ltd., a UK-based company listed on the Toronto Stock Exchange. He accused the company of tax evasion, the use of proxies, and failing to comply with environmental regulations.
“The state’s investigation revealed other various unethical business practices being engaged upon by the mining company,” he added. Jimoda also highlighted that companies involved with SEGILOLA, such as SINIC Engineering, ATF Consulting, and Monurent Nigeria, were reportedly outsourcing employment and operations to third parties without proper documentation or environmental compliance.
According to Prof. Jimoda, the federal constitution places environmental oversight under the concurrent list, which allows the state to assess the impact of companies’ operations. However, he noted that “the Segilola project, despite its significant production since 2019, has resisted complying with extant laws like the Personal Income Tax Act (PITA) and the Company Income Tax Act (CITA), which govern tax levies.”
The state government is now demanding that SEGILOLA pay all accrued taxes and environmental development levies and submit proper documentation for all parties involved. Jimoda emphasised that the government would “take all necessary steps, including legal action, to ensure compliance and safeguard the state’s environmental and economic interests.”
He further clarified, “We don’t want them out of Osun state, but they must fulfill their obligations and responsibilities to Osun State.”
Also speaking at the press conference, Dr. Wale Bolorunduro, the Financial Consultant to the Office of Mining and Mineral Resources, echoed Jimoda’s concerns. He explained that agencies of the government have carried out proper assessments, and efforts were made to encourage Segilola and its associates to meet their tax obligations. However, the company has allegedly engaged in subterfuge by failing to disclose its service providers fully, complicating the tax assessment process.
According to Bolorunduro, this lack of disclosure has led to delays in assessing the company’s employees for proper tax documentation, which constitutes an obstruction under Section 97 of PITA. The state has now taken action after SEGILOLA failed to provide the necessary information on the N3.2 billion owed, which includes a four-year PAYE assessment and withholding tax remittance.
Bolorunduro expressed disappointment that Thor Explorations Ltd., listed on both the London and Toronto Stock Exchanges, has allowed its subsidiaries in Nigeria to engage in practices aimed at evading tax payments due to the state.
In response to rumors that the Adeleke Dynasty is involved in the management of the Segilola Gold Project, Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi, dismissed the allegations, stating that those involved in the project had shortchanged the Osun State Government.
Reacting to the accusations, Austine Menegbo, the country manager of Segilola Resources Operating Limited, refuted the claims. He insisted that the company had consistently fulfilled its tax obligations and royalty payments, both to the Federal and State governments.
“We maintain detailed records and have receipts for all royalty payments made to the Federal Government, as well as tax remittances to the State Government,” Menegbo said.
He added, “We are regularly audited by the Federal Ministry of Environment and the Ministry of Solid Minerals Development, and to date, there has been no claim of pollution or environmental violations against the company.”
Menegbo assured that Segilola remain committed to contributing to the economic growth of Osun State and the country, while adhering to the highest ethical and operational standards. He reiterated that the company would maintain open communication with relevant authorities to ensure compliance with both federal and state laws.
“The claims of environmental and operational non-compliance are not true, as the company has sufficient evidence to prove that it followed all necessary protocols for environmental assessments and regulatory filings,” Menegbo concluded.