Segilola Face-off- Alake Inaugurates Probe Panel, Insists States Lack Powers to Shut Mining Operations

In Abuja, the Minister of Solid Minerals Development, Dele Alake, recently inaugurated a fact-finding team in response to the ongoing dispute between the Osun State Government and Segilola Resources Operating Limited (SROL). This initiative comes as the minister aims to clarify the circumstances surrounding the decision to seal off the gold mining company, which was reportedly due to allegations of tax evasion and other infractions.

During a press briefing, Minister Alake asserted the federal government’s stance that mining operations fall under the exclusive legislative authority of the federal government. This means that state governments do not have the unilateral power to disrupt mining activities within the country. “I want to emphasize our position: while mining companies must adhere to all pertinent laws and regulations—such as tax payments, environmental standards, and Corporate Social Responsibility (CSR)—it is crucial to recognize that sub-national entities cannot arbitrarily halt mining operations,” Alake stated.

He further explained that the federal government acknowledges the unique challenges within the mining sector and the importance of collaboration with state authorities. He noted that states have the opportunity to apply for mining licenses, facilitating their active participation in the mining industry. States can also leverage their representatives in the Mineral Resources and Environmental Management Committee (MIREMCO), which oversees mining activities in their jurisdictions.

“MIREMCO is operational in every state of the federation and is responsible for ensuring that mining companies comply with existing regulations and laws. Out of the eight members in each state’s MIREMCO, five, including the chairman, are nominated by state governments. Therefore, states already play a significant role in the regulation of mining activities, which should eliminate issues of constitutional violations,” Alake added.

In his inaugural address, Alake outlined the Terms of Reference (ToR) for the committee, which includes identifying the root causes of the conflict between the Osun State Government and SROL, reviewing contractual agreements between the parties, and evaluating the impact of the company’s operations on local communities and the broader Osun State economy.

Dr. Mary Ogbe, the Permanent Secretary, encouraged states to collaborate with the federal government to prevent disruptions in mining operations. She highlighted that such disruptions could deter potential investors and hinder the Foreign Direct Investment (FDI) necessary for sector development.

On behalf of the committee, Vice-Chairman Dr. Dele Oye, a representative of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), assured the minister that the panel would act with the highest integrity while fulfilling its responsibilities.