Segilola vs Osun: Gold Mining Firm Continues Operations after Court Restrains Govt

Segilola Resources Operating Limited (SROL) has continued its gold mining operations in Osun State after a Federal High Court in Abuja granted an interim injunction in its favour last week, THISDAY has learnt.

The court had restrained the Osun State government and its officials from interfering with the company’s mining operations. The order was issued by Justice Emeka Nwite, following an ex parte motion filed by the company.

The injunction prevents the state government from disrupting the gold mining operations of Segilola Resources or denying the company access to its mining site.

This comes amid ongoing allegations against the company regarding tax liabilities and environmental concerns. However, SROL had strongly denied the accusations, stating that there was no evidence to support them.

It is believed that the court ruling reinforces the importance of respecting judicial processes in settling disputes, particularly in sensitive sectors like mining, where operational disruptions can have far-reaching economic implications.

It was learnt that the Osun State government earlier sealed off the mine site through a magistrate court order, even though magistrate courts lack jurisdiction over tax matters.

However, the federal government’s position, it was further gathered, is that mining is under the exclusive legislative list, meaning that state governments have no authority to unilaterally shut down mining operations.

“It is our firm belief that sub-national authorities do not possess the power to arbitrarily shut down mining operations because the mining of liquid or solid minerals belongs in the exclusive list, within the purview of the federal government, to regulate, legislate and direct,” the Minister of Solid Minerals Development , Dele Alake, asserted during the week.

However, the minister reaffirmed the position that mining companies must obey all laws and regulations guiding their operations such as payment of taxes, environmental regulations, Corporate Social Responsibility (CSR), among others.

Another area of disagreement is the actual value of the tax allegedly owed the Osun State government by the mining firm.

Initially, the Osun State Internal Revenue Service (OSIRS) issued a tax liability of N3,250,598,513 to Segilola Resources, which was later revised to N98,347,105.

But in a recent radio interview, the state governor’s Special Adviser on Mining and Mineral Resources, Prof. Lukman Jimoda, it was further understood, declared the revised notice void, insisting that the initial liability still stands.

“This ongoing dispute not only undermines Nigeria’s regulatory processes but also sends a dangerous signal to potential foreign investors. The state’s overreach risks damaging the country’s reputation as a stable environment for foreign direct investment (FDI), especially in the mining sector critical to economic diversification,” a source told THISDAY.

With the matter now before the judiciary, stakeholders are looking to the court for an interpretation of the relevant provisions of the law as both Segilola Resources and the Osun state government are expected to abide by the court’s directives as the legal process unfolds.

Recall that the federal government, through the Ministry of Solid Minerals Development, during the week also established a fact-finding committee to investigate the circumstances surrounding the sealing of the mine site.

During a press briefing in Abuja, Alake reaffirmed the federal government’s stance that mining falls under the exclusive legislative list.

In her remarks at the event, the Permanent Secretary, Dr. Mary Ogbe, urged states to cooperate with the federal government to avoid disruptions in mining operations.

She emphasised that such actions send wrong signals to prospective investors and can be a disincentive to the needed FDI required to develop the sector. The probe panel has seven days to submit its report.

Responding on behalf of the committee, Vice Chairman and representative of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) Dr. Dele Oye, assured the minister that the panel would serve with utmost integrity in fulfilling its terms of reference.

Members of the committee include the director of the ministry’s mines inspectorate, Mr. Imam Ganiyu (chairman); representative of NACCIMA, Dr. Dele Oye (vice-chairman); Pwol Dareng, assistant director of organised private sector (OPS) of the ministry (secretary).

Other members are director of mines environmental compliance (MEC), Dr. Vivian Okono; director of legal, N.C Odili; representative of the Federal Inland Revenue Service (FIRS), chief of staff to the executive chairman, Tayo Koleosho; and a representative of the Nigerian Investment Promotion Commission (NIPC), Zubeir Abubakar.