FG constitutes committee to probe tax evasion by Osun mining company

The Federal Government has set up a committee to investigate the taxation and operational disputes between the Osun State Government and Segilola Resources Operating Limited (SROL), a subsidiary of Thor Explorations Limited.

The Minister of Solid Minerals Development, Dele Alake, made this known in a statement by his Special Assistant on Media, Segun Tomori, on Friday, October 4, 2024.

Alake said the committee was established to engage both parties with the aim of resolving the dispute and restoring industrial harmony.

The Osun State Government had, on September 30, sealed the business premises of SROL, following a court order permitting it to confiscate the company for various flagrant tax violations and other operational matters.

The state government had charged the company with unethical business practices and tax evasion amounting to approximately $1.9 million.

Alake said the committee would be chaired by the Permanent Secretary of the ministry, Dr Mary Ogbe.

According to him, the committee will include representatives of the Federal Inland Revenue Service (FIRS), the Ministry of Labour and Employment, and the National Association of Chambers of Commerce, Industry, Mines and Agriculture.

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The minister emphasised that the federal government has been showcasing investment opportunities in the solid minerals sector to the global audience.

He, however, warned that the closure of mining operations by sub-nationals could abort efforts to attract Foreign Direct Investment (FDI) and provoke divestment.

Alake added: “Indiscriminate closures of mining operations by sub-nationals raise 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 restated the federal government’s determination to open up Nigeria’s landscape to boost economic growth, increase employment opportunities, and facilitate community development.

He added that any interruption in industrial production could undermine the goals of economic prosperity.

The Star