Adeleke backs federal intervention in Osun-Thors tax dispute
By Deborah Oladejo, Osogbo
Osun State Governor, Ademola Adeleke, has expressed support for the intervention of the Federal Ministry of Mines in resolving the ongoing tax dispute between the state government and Thors Explorations Limited. The dispute centers on unpaid taxes and alleged environmental degradation caused by the company’s mining operations.
In a statement issued by the Governor’s spokesperson, Mallam Olawale Rasheed, Adeleke reiterated that Osun State’s claims are grounded in the Nigerian Constitution and existing laws, asserting that the state has every right to collect taxes owed by the company.
Governor Adeleke revealed that he had earlier reached out to the Minister of Mines, Dele Alake, to express the state’s commitment to fostering Foreign Direct Investment (FDI) in Nigeria.
However, he emphasized that investors must adhere to local regulations, maintain transparency, and take responsibility for safeguarding the environment.
The Governor noted that discussions and negotiations with Thors Explorations, initiated in 2023, have so far yielded no results. He disclosed that Segilola Resources Operating Limited, a subsidiary of Thors Explorations, owes the state N3.25 billion in taxes, with a demand notice issued as far back as April 2024.
Adeleke further claimed that Thors Explorations is operating six other companies on the same site without informing the state government, leading to concerns over tax evasion and environmental accountability.
The six undisclosed companies include SINIC Engineering Limited, ATF Consulting Limited, Monument Nigeria Limited, Rabaa Cleaning Limited, Deep Rock Drilling Services, and CEFO Security Limited.
In addition to the tax issues, the Governor emphasized that Osun State holds over 5 million shares in Thors Explorations, United Kingdom, and is entitled to financial compensation as a shareholder. He insisted that the state would pursue its rights in this regard.
Governor Adeleke also expressed concern over the significant environmental degradation caused by Thors Explorations’ mining operations in Osun. He stressed that the company is obligated to pay for environmental reclamation, even though mining falls under the exclusive legislative list, which is under federal jurisdiction.
“Osun State has a strong partnership with the Federal Ministry of Mines, and we hold several mining licenses. We are well-versed in the relevant laws and the Constitution. Our actions are aimed at securing what is rightfully due to our state, as affirmed by existing laws and practices,” Adeleke stated.
He added that Osun provides an investor-friendly environment but stressed the importance of transparency and accountability in the mining sector. “Local laws must be respected, just as they are in Europe and North America. Furthermore, the environment must be restored after mining activities.”
Governor Adeleke concluded by welcoming the Federal Ministry’s fact-finding team, noting that the state is prepared to present its case. “Thors Explorations cannot hide behind the exclusive legislative list to evade local taxes, deny shareholders their rights, and damage our environment with impunity.”
