FG resolves dispute between Osun Government, Segilola mining firm
The Minister of Solid Minerals Development, Dr. Dele Alake, has emphasized the importance of a harmonious relationship between state governments and mining operators to attract investment and advance Nigeria’s mining sector.
Speaking in Abuja during a mediation meeting with Osun State Governor Ademola Adeleke and representatives of Segilola Resources Operating Limited (SROL), Alake stressed that conflicting policies and strained relations between stakeholders pose a threat to the federal government’s economic diversification agenda.
“In a business environment with multiple regulatory authorities, foreign investors are discouraged,” Alake stated. “Investors prefer countries where regulations are clear, streamlined, and consistent. Solid minerals are exclusively under the federal government’s jurisdiction, but when subnational governments issue conflicting directives, it deters critical investments needed for the sector’s growth.”
The meeting aimed to resolve a dispute that led to the temporary closure of SROL’s operations in Osun. To address the conflict, Alake had earlier set up a committee led by Engr. Ganiyu Imam, Director of the Ministry’s Mines Inspectorate. Based on the committee’s findings, the minister facilitated the mediation to achieve a resolution.
Governor Adeleke welcomed the intervention, reaffirming his administration’s commitment to improving the ease of doing business while ensuring ethical mining practices. He expressed the state government’s readiness to reach a compromise with the company for smooth mining operations.
Special Adviser to the Governor on Mining and Mineral Resources, Prof. Lukman Jimoda, outlined key issues in the dispute, including tax claims—particularly Pay As You Earn (PAYE)—the state’s shareholding in SROL, environmental concerns, and the broader economic benefits Osun should derive from the company’s operations.
Following deliberations, both parties pledged to continue discussions to resolve outstanding issues. The resolution was marked by the presentation of Osun State’s shareholding certificate to Governor Adeleke by Segilola Resources Limited.
The meeting was attended by Governor Adeleke, Prof. Jimoda, Special Adviser to the Governor on Media and Publicity, Olawale Rasheed, and other state officials. SROL was represented by its MD/CEO, Segun Lawson; Country Director, Austin Menegbo; and Non-Executive Directors Folorunsho Adeoye and Kayode Aderinokun.
