Explaining the Osun Govt, Segilola Gold Project controversy

By Deborah Oladejo, Osogbo

The controversy between the Osun State Government and Segilola Resources Operating Limited (SROL), a subsidiary of Thor Explorations Ltd of the United Kingdom has been making headlines.

The conflict revolves around allegations of tax evasion and other financial violations allegedly committed by SROL, resulting in the State Government, sealing off the company’s business premises in September 2024.

The Osun State Government accused Segilola Resources Operating Limited of unpaid financial considerations totaling N60 billion.

The company, a leading Nigerian mining company, operates the Segilola Gold Project in Iperindo, Osun State, Nigeria.

Key issues

The Government is accusing SROL of the following alleged infractions:

1. Non-remittance of taxes deducted as PAYE taxes from employees and service providers.
2. Non-compliance with disclosure requirements under tax laws.
3. Failure to remit the balance of 3.2 billion Naira tax liability.
4. Shirking statutory responsibility to provide basic tax information/documents.
5. Unpaid financial considerations due to Osun State from the acquisition of its interest in Tropical Mines Limited (TML).
6. Non-disclosure of all service providers operating on the Segilola Gold Project.

Other issues raised against the company are:

1. Alleged tax evasion and subterfuge.
2. Failure to provide tax information on employees and service providers.
3. Non-payment of Business Premises levy by ATF Consulting Limited.
4. Obstruction of tax assessment.
5. Environmental concerns (high particulates, acid drains from waste rocks).
6. Unresolved claims on environmental levy.

The Osun State Government is demanding:

1. Payment of outstanding taxes and financial considerations.
2. Disclosure of all service providers and tax information.
3. Compliance with environmental protocols.

The Government promised to take the following steps:

1. Petitioning Securities Exchanges of Toronto and London.
2. Using statutory power to collect PAYE taxes.
3. Monitoring environmental impacts.

However, Segilola Resources Operating Limited has consistently denied any wrongdoing. The company said it has:

1. Consistently fulfilled all tax obligations
2. Made royalty payments in full and on time
3. Maintains detailed records and receipts for verification

On Environmental Compliance, SROL argued it has:

1. Followed necessary protocols for environmental assessments
2. Conducted regulatory filings
3. Implemented environmental compliance monitoring
4. Mitigated potential environmental impacts

Concerning Audits and Compliance, the company contends their books are:

1. Regularly audited by Federal Ministry of Environment
2. Regularly audited by Ministry of Solid Minerals Development
3. No claims of pollution or environmental violations