Nigeria Launches Fact-Finding Committee Into Gold Project Dispute

The Nigerian government has established a Fact-Finding Committee to investigate the recent closure of Segilola Resources Company by the Osun State Government in south-west, Nigeria.

During a press briefing at the Ministry of Solid Minerals Development headquarters in Abuja, Nigeria, The Minister of Solid Minerals Development, Dr. Dele Alake announced the committee’s formation.

He emphasised that the committee will examine the underlying issues of the dispute and provide actionable recommendations to foster mutual understanding and promote sustainable mining practices that benefit both the State and the company.

He said “the Committee shall investigate the nature of the face-off and provide actionable recommendations for resolving the conflict, with a view to foster mutual understanding and ensuring sustainable mining practices that benefit both State and the company.“

The Minister noted that the committee aims to identify the root causes of the dispute between Osun State and Segilola Resources, review contractual agreements, assess the company’s impact on local communities and the economy, and propose solutions to sustain mining while safeguarding State and community interests.

Dr. Alake stated that the committee is expected to submit a final report within seven days of its inauguration, with interim updates provided throughout the investigation.

“The committee will report directly to the Honourable Minister. Interim updates will be provided as the work progresses. The Minister said.

Reiterating the federal government’s stance, Dr. Alake asserted that mining falls under the exclusive legislative jurisdiction of the federal government, meaning State authorities cannot unilaterally disrupt mining operations.

He stressed that while mining companies must adhere to laws, including tax obligations and environmental regulations; States lack the authority to arbitrarily shut down operations.

Dr. Alake explained that the federal government acknowledges the unique challenges of the mining sector and aims to collaborate with States, allowing them to apply for mining licenses and appoint representatives to the Mineral Resources and Environmental Management Committee (MIREMCO), which oversees compliance with regulations.

“The MIREMCO exists in all states, ensuring that mining companies adhere to applicable laws. Since state governments nominate five out of eight members of MIREMCO, they are significantly involved in mining regulation,” Dr. Alake noted.

In her remarks, Permanent Secretary, Dr. Mary Ogbe urged State governments to cooperate with the federal government to avoid disruptions in mining operations, highlighting that such actions could deter potential investors and negatively impact foreign direct investment in the sector.

The committee’s vice-chairman and President of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dr. Dele Oye, assured the minister of the panel’s commitment to integrity in fulfilling its mandate.

The committee will be chaired by Engr. Imam Ganiyu, with members including Dr. Vivian Okono and N.C. Odili from the Ministry, representatives from the Federal Inland Revenue Service, the Ministry of Labour and Employment, NACCIMA, and the Nigerian Investment Promotion Commission (NIPC). Mr. Pwol Dareng from the Ministry of Solid Minerals Development will serve as secretary.

This initiative follows the Osun State Government’s closure of Segilola’s operations on September 30, 2024, due to allegations of tax evasion and operational misconduct, which the company disputes.

Olusola Akintonde