Mr. Dele Alake, Minister of Solid Minerals Development, has cautioned against state governments arbitrarily shutting down mining operations, stating that it threatens federal efforts to attract foreign direct investments (FDI). He announced a fact-finding committee to investigate a dispute between the Osun State government and Thor Explorations Limited over taxation. Alake asserted that mining is federally regulated and urged cooperation to achieve industrial harmony, emphasizing the negative impacts of operational closures on economic growth and employment.
The Minister of Solid Minerals Development, Mr. Dele Alake, has expressed concern regarding the arbitrary suspension of mining operations by state governments, warning that such actions may jeopardize the federal government’s efforts to attract Foreign Direct Investments (FDI). Mr. Alake made these statements following the announcement of a fact-finding committee tasked with investigating the ongoing conflict between the Osun State government and Thor Explorations Limited, administrators of the Segilola Resources Operating Limited, which has emerged over issues related to taxation and operational concerns. In a statement issued by his Special Assistant on Media, Segun Tomori, in Abuja, the Minister emphasized that mining operations fall under the exclusive jurisdiction of the federal government and should not be unilaterally disrupted by state administrations. He has appointed Dr. Mary Ogbe, the Permanent Secretary of the Ministry, to lead the committee aimed at resolving the disagreement through dialogue with both parties involved. Mr. Alake indicated that the federal government has been actively promoting investment opportunities within the solid minerals sector on a global scale. He cautioned that the arbitrary closure of mining operations at the state level poses a threat to these endeavors, potentially deterring foreign investors and leading to divestment from existing companies. He asserted, “Indiscriminate closures of mining operations by sub-nationals raises the risk of discouraging foreign direct investments and even worse, possible divestment by existing companies. Mining is on the exclusive legislative list. The Ministry of Solid Minerals should be consulted before such disruptive actions are taken.” The Minister reiterated the federal government’s commitment to escalating productive activities across the country to stimulate economic growth, enhance employment opportunities, and foster community development. He warned that halting industrial production could undermine the objectives of economic prosperity, deprive workers of their livelihoods, and exacerbate hardships in affected areas. In light of these developments, Mr. Alake urged both the Osun State Governor, Senator Ademola Adeleke, and the management of Thor Exploration Limited to collaborate in seeking a peaceful resolution to the dispute, emphasizing the welfare of workers and their families who could be adversely impacted by operational disruptions. The fact-finding committee will comprise representatives from various agencies, including 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 issue surrounding Nigeria’s mining sector has become a controversial topic, especially with the recent conflicts between state governments and mining companies. The Minister of Solid Minerals Development, Mr. Dele Alake, is particularly concerned about how state-imposed shutdowns can hinder the federal government’s initiatives to attract foreign investments crucial for economic growth. Nigeria has extensive mineral resources, and optimizing their extraction and contribution to the economy relies on a stable regulatory environment, mainly overseen by the federal government. This article highlights the Minister’s response to an ongoing dispute affecting a mining operation in Osun State.
In conclusion, the arbitrary closure of mining operations by state entities poses a significant risk to Nigeria’s efforts to attract and retain foreign direct investments in the solid minerals sector. The federal government, through the Ministry of Solid Minerals Development, asserts its regulatory authority over mining activities and emphasizes the urgency for cooperation between conflicting parties to ensure industrial stability and support economic growth. By resolving disputes amicably, stakeholders can mitigate adverse effects on workers and local communities while fostering a conducive environment for investment in Nigeria’s rich mineral resources.
Original Source: www.arise.tv
