The Minister of Solid Minerals Development, Dr. Dele Alake, has emphasized the need for a harmonious relationship between state governments and mining operators to foster investment and advance Nigeria’s mining sector.
Speaking at a mediation parley with Osun State Governor, Ademola Adeleke, and representatives from Segilola Resources Operating Limited (SROL) in Abuja, Alake stressed that the federal government’s economic diversification agenda hinges on a stable mining environment free of regulatory conflicts.
“Investors prefer countries where regulations are clear, streamlined, and consistent. Solid minerals belong exclusively to the federal government, but when subnational governments issue conflicting directives, it deters the critical investments needed to grow the mining sector,” Alake stated.
The meeting was convened following a dispute between Osun State and SROL, which had led to the closure of the company’s operations. Alake had earlier set up a high-powered committee led by Engr. Ganiyu Imam, Director of the Ministry’s Mines Inspectorate, to investigate the issues.
The committee’s findings formed the basis for the mediation efforts aimed at achieving a resolution.
Governor Adeleke welcomed the minister’s intervention, affirming Osun State’s commitment to improving the ease of doing business while ensuring that mining companies adhere to ethical and regulatory standards.
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) deductions; Osun State’s shareholding in Segilola Resources Limited; Environmental concerns related to mining activities; and The broader economic interests of Osun State in Segilola’s operations.
Following deliberations, both parties agreed to continue discussions to resolve outstanding issues amicably. In a symbolic step towards resolution, Segilola Resources presented Osun State’s shareholding certificate to Governor Adeleke.
The mediation meeting was attended by top government officials, including Prof. Jimoda, Special Adviser to the Governor on Media and Publicity, Olawale Rasheed, and other senior Osun State representatives. Segilola Resources was represented by MD/CEO Segun Lawson, Country Director Austin Menegbo, and Non-Executive Directors Folorunsho Adeoye and Kayode Aderinokun.
The intervention marks a significant step in ensuring that state-federal relations in the mining sector remain collaborative rather than confrontational, with Alake urging clear and consistent regulatory frameworks to enhance foreign direct investment (FDI) and revenue generation.
