Minister Dele Alake warns that indiscriminate mining shutdowns by states may jeopardize Nigeria’s Foreign Direct Investment prospects. He established a committee to investigate the conflict between the Osun State government and Thor Explorations Limited over taxes and operations. Alake emphasizes that mining regulation is federally managed and urges cooperation to resolve disputes without disrupting mining activities.
The Minister of Solid Minerals Development, Mr. Dele Alake, has issued a stern warning regarding the arbitrary shutdowns of mining operations by state governments, emphasizing that such actions could severely undermine the federal government’s initiatives to attract Foreign Direct Investments (FDI) into Nigeria’s solid minerals sector. This statement was made during the announcement of a fact-finding committee established to investigate the dispute between the Osun State government and Thor Explorations Limited, the parent company of Segilola Resources Operating Limited, which concerns taxation and operational issues. Mr. Alake highlighted that the management and regulation of mining activities are the prerogative of the federal government, asserting that state governments should refrain from unilateral decisions that could disrupt the industry. He appointed Dr. Mary Ogbe, the Permanent Secretary of the Ministry, to lead the investigative committee, which will engage with both parties to mediate the conflict and restore industrial harmony. The Minister underlined the federal government’s commitment to promoting investment opportunities within the solid minerals sector globally. He articulated his concern that indiscriminate closures by state authorities have the potential to not only deter foreign investments but also compel existing companies to withdraw from operations. “Indiscriminate closures of mining operations by sub-nationals raises the risk of discouraging foreign direct investments and even worse, possible divestment by existing companies,” Mr. Alake stated, emphasizing that mining regulation falls under the exclusive legislative jurisdiction of the federal authorities. Mr. Alake further elaborated on the significant negative impact that halting mining operations could have on the economy by stalling production activities that ultimately contribute to economic growth, employment, and community development. He urged both the Osun State Governor, Senator Ademola Adeleke, and the management of Thor Explorations Limited to engage cooperatively with the fact-finding committee to address the issues at hand amicably, while allowing operational activities to resume. In making his appeal, he stressed the importance of maintaining industrial operations to support the livelihoods of workers and their families. The fact-finding committee will also include representatives from the Federal Inland Revenue Service (FIRS), the Ministry of Labour and Employment, and the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).
The current mining landscape in Nigeria has been challenged by conflicts between state authorities and private mining companies, often leading to operational shutdowns. Such conflicts compromise efforts to enhance Foreign Direct Investment (FDI) in the sector, which is crucial for economic development. The federal government claims exclusive rights over mining operations and regulations, creating tension with state governments that may impose their regulations or taxes, triggering disputes that threaten overall stability and investment prospects in the industry.
The recent warnings issued by Minister Dele Alake reflect significant concerns regarding the arbitrary shut down of mining operations by state governments. By establishing a fact-finding committee, the federal government aims to mediate existing disputes and prevent future occurrences that could jeopardize investment in the sector. The emphasis on cooperation among stakeholders is pivotal in maintaining a conducive environment for foreign investment and ensuring economic prosperity.
Original Source: www.arise.tv
