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By Sola Isola
The efforts of the Ademola Adeleke administration in reforming the mining sector of Osun have attracted commendation and accolades, as experts revealed that the reformation is beginning to yield quality results.
The Osun State Government had on the 30th of September, 2024 sealed up the business premises of Segilola Resources Operating Limited, following a Court Order permitting the State to distrain the company for various flagrant tax violations and failure to disclose fully the employees directly and indirectly involved in its business activities, obstruction of tax processes by failing to provide timely tax information and documents.
Segilola Resources Operating Limited is one of the major companies carrying out mining activities and mineral exploration in the State as a subsidiary of Thors Explorations Limited listed on London and Toronto Stock Exchanges.
The Osun State Government had raised serious concerns about the operations of the Segilola Gold Project, managed by subsidiaries of Thor Explorations Ltd, a UK-based company listed on the Toronto Stock Exchange.
According to Prof. Lukman Jimoda, the Special Adviser to the Governor on Mining and Mineral Resources, the state’s investigation revealed various unethical business practices, including alleged tax evasion, use of proxies, and failure to comply with environmental rules and regulations.
The companies involved—such as SINIC Engineering, ATF Consulting, Monurent Nigeria, and others—are reportedly engaged in outsourcing employment and operations to undisclosed third parties without proper documentation or environmental compliance.
Prof. Jimoda highlighted that the federal constitution places environmental oversight under the concurrent list, allowing the state to assess companies’ operations for economic and environmental impacts.
He emphasized 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.
He also expressed concerns over pollution, including particulate emissions and possible acid drains from waste rocks, which pose serious environmental risks to the state.
The state government then demanded the payment of accrued taxes and environmental development levies, as well as proper documentation for all involved parties.
The Special Adviser stressed that Osun has not received its due revenue from the Segilola project for over three years, despite its bankable gold production since 2019.
Weeks after, the Federal government stepped in, after a conflict resolution meeting initiated by the Minister of Solid Mineral Development, the parties agreed to jointly work together to address four major areas of disagreement raised by the Osun state government against Thors Explorations Limited.
The issues listed by the state government include resolution of Osun shareholding in the Segilola Mining company, tax payment by the firm, environmental degradation, disputed mining fields among others.
Osun Spring reports that this resolution made Osun state secure its shareholding right in the mining firm for the first time.
An Abuja-based mining expert, Segun Olatoye, who in a telephone conversation with our correspondent commended Governor Adeleke and his team for the job well done.
He noted that he received reports that Osun is beginning to enjoy the benefit of being a shareholder in Segilola Resources Operating Limited, stating that Segilola is beginning to pay into the state government account which means the state will enjoy significant growth in income.
Olatoye stressed that there were reports that the decision of the Ademola Adeleke-led administration to take Segilola up was termed political at first adding it is now evident it is the benefit of the state.
“I want to commend Governor Ademola Adeleke of Osun State and his team for the job well done in the mining sector.
“We have received reports that Segilola Resources Operating Limited is now beginning to pay the Osun state government its right as a shareholder in the company, this means that Osun state will witness a huge increase in income.
“When this conversation started, we were told it was political, but the outcome now has confirmed it is not. It is for the benefit of the state and its people”, he noted.
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