Alake resolves Osun-Segilola mining dispute

Minister of Solid Minerals Development, Dr. Dele Alake, on Tuesday, brokered a resolution in the mining dispute between Osun State Governor, Ademola Adeleke, and Segilola Resources Operating Limited (SROL) in a landmark agreement.

Alake emphasized that a harmonious relationship between state governments and mining operators is crucial for attracting investment and advancing Nigeria’s mining sector.

Speaking during a mediation meeting with Governor Adeleke and SROL representatives at his office in Abuja, Alake reiterated that solid minerals are central to the federal government’s economic diversification agenda.

However, he warned that conflicting policies and strained relations between operators and state governments could jeopardize efforts to develop the sector.

Alake said: “In a business environment with a multiplicity of regulatory authorities, foreign investors are discouraged. Investors prefer countries where regulations are clear, streamlined, and consistent.

“It is trite to emphasize that solid minerals belong exclusively in the federal government’s purview, but when sub-national governments issue conflicting directives, it deters the critical investments needed to grow the mining sector.”

The minister, in a statement by his Special Assistant on Media, Segun Tomori, urged an amicable resolution of the dispute between Osun State and SROL, highlighting that the state stands to benefit from an environment that promotes industrial harmony and eases the business climate. Such conditions would lead to increased revenue and attract foreign direct investment (FDI).

It recalled that the dispute escalated to the closure of SROL’s operations by the Osun State government, prompting Alake to establish a high-powered committee led by Engr. Ganiyu Imam, Director of the Ministry’s Mines Inspectorate. Following the committee’s report, the minister convened the meeting to mediate, resolve outstanding issues, and bring closure to the impasse.

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In his remarks, Governor Adeleke welcomed the minister’s intervention, expressing the state’s commitment to improving the ease of doing business while ensuring that ethical standards are upheld.

He reiterated the state government’s readiness to reach a compromise with the company to ensure smooth mining operations in Osun.

Also speaking, the Special Adviser to the Governor on Mining and Mineral Resources, Prof. Lukman Jimoda, outlined the key issues at the heart of the dispute, including disputed tax claims (particularly Pay As You Earn, PAYE), the state’s shareholding in the company, environmental concerns, and the broader economic interests Osun should gain from Segilola’s operations.

After deliberations and the minister’s mediation, both parties pledged to continue discussions to resolve any outstanding issues. The resolution culminated in the presentation of the 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 government officials. Segilola was represented by MD/CEO, Segun Lawson; Country Director, Austin Menegbo; Non-Executive Directors Folorunsho Adeoye and Kayode Aderinokun.