Rep. SMATO moves motion on urgent need to address dispute between Osun Gov’t and Segilola Gold Company

Member of House of Representatives, Ogooluwa/Surulere Federal Constituency, Hon. Ojo Makanjuola Smato, on Wednesday, moved a motion on the floor of the parliament on the need to urgently intervene in the impasse between the Osun State Government and Segilola resources operating limited in order not to frustrate foreign direct investment in the solid mineral sector.

The full text:

Notes that the Constitution of the Federal Government in Section 44 (3) expressly puts natural resources which includes mining under the exclusive list. However, in recent times sub nationals have continue to make laws and impose restrictions as well levies on activities associated with and surrounding mining operations.

Also note that following alleged controversies surrounding the operation of Segilola Gold Company and the accusation of non-payment of taxes, the Osun State Government on Monday 30th September, 2024, said it sealed the business premises of Segilola Resources Operating Limited, the largest gold company in Nigeria.

Further notes that Osun state has been demanding over 60 billion Naira and redeemable shares from Segilola Operating Resources Ltd for acquiring Osun state’s interest in Tropical Mines Ltd but has been rebuffed.

Aware that the core of the dispute centers around taxation and operational issues, with both parties presenting claims and counterclaims that have disrupted operations at Segilola, Nigeria’s first large-scale gold mine;

Worried that as a Nation facing one of its toughest economic challenges in recent history and has recognized the sector as one of the most viable sector with the capacity of revamping our economy, which has lead to the Government actively promoting investment opportunities in the solid minerals sector around the world.

Recognizes that the ongoing situation could send the wrong signals to the international mining investment community leading to the possible black listing of Nigeria as a mining investment destination. Closing down mining operations by subnational governments could jeopardize the country’s efforts to attract Foreign Direct Investments (FDI) and may even lead to divestment by existing companies.

Concerned that without urgent intervention by the legislature, the feud between both parties could disrupt peace and industrial harmony that will not be beneficial to the economic fortunes of the country and also workers as well as their families who have already been negatively affected by the closure of operations at the factory;

Resolves to:
i. Mandate the House Committee on Solid Minerals, the Caucus Leader of the South West and the Caucus Leader of Osun State to intervenes in the dispute between all parties, which include the Regulators the Federal Ministry of Solid Minerals, the State, (Sub nationals) and the Operators, (Segilola Ltd)

ii. Call on the House to constitute an ad hoc committee comprising of the Leadership of the House along with the Chairmen of House Committee on Solid Minerals and Chairman on House Committee on Finance to approach the council of states for the resolution of all the identified areas of conflict between the National and Sub national governments especially, with  regards to the provisions of the Nigerian mining act 2007 as amended and further mandates its committee on Solid minerals to develop an aide memior that will be presented at the council of State by the leadership of the House.