FG resolves Osun-Segilola dispute for improved mining operations

As part of efforts to improve mining operations and provide employment opportunities in the mining sector of the nation’s economy, the Federal Government has resolved the dispute between the Osun State Government and Segilola Resources Operating Limited (SROL).

Speaking on behalf of the Federal Government, Dele Alake, the Minister of Solid Minerals Development, noted that a harmonious relationship between State Government and mining operators is crucial not only for attracting investment but also for advancing the nation’s mining sector.

Alake stated this during a mediation between the Osun State Government, represneted by Governor Ademola Adeleke and representatives of Segilola Resources Operating Limited (SROL) held in Abuja on Tuesday.

A statement from the Ministry stated that Alake emphasised that “solid minerals play a central role in the Federal Government’s economic diversification agenda”, adding that conflicting policies and strained relations between State Governments and mining operators could jeopardise smooth operations in mining sector.

Alake said, “In a business environment with multiplicity of regulatory authorities, foreign investors are discouraged.”

The Minister emphasised that investors prefer countries where regulations are clear, streamlined and consistent, stressing that solid minerals belong exclusively under the Federal Government’s purview.

“When sub- national government issue conflicting directives, it deters the critical investments needed to grow the mining sector.” Alake said.

The Minister called for an amicable resolution of the dispute between Osun State and SROL, highlighting that the State stands to benefit from an environment that promotes industrial harmony and eases the business climate. Such conditions would lead to increased revenue and attract foreign direct investment (FDI).

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At the height of the dispute, which resulted in the closure of SROL’s operations by the State Government, prompting Alake to establish a high-powered Committee led by Ganiyu Imam, Director of the Ministry’s Mines Inspectorate.

The Committee had since submitted its findings. The Minister convened the mediation meeting based on the report of the Committee to mediate, achieve resolution and put a closure to the imbroglio .

Governor Adeleke welcomed the Minister’s intervention, expressing Osun State’s commitment to improving the ease of doing business while ensuring that ethical standards are upheld. He reiterated the State Government’s readiness to reach a compromise with the company to ensure smooth mining operations in Osun State.

Lukman Jimoda, Special Adviser to the Governor on Mining and Mineral Resources, outlined the key issues at the heart of the dispute, including disputed tax claims (particularly Pay As You Earn, PAYE), the State’s shareholding in the company, environmental concerns, and the broader economic interests Osun should gain from Segilola’s operations.

After deliberations and Minister’s mediation, both parties pledged to continue discussions to resolve any outstanding issues. The resolution culminated in the presentation of the State’s shareholding certificate to Governor Adeleke by Segilola Resources Limited.

BusinessDay reports that the meeting was attended by Governor Adeleke, Lukman Jimoda, Professor and Special Adviser to the Governor on Media and Publicity, Olawale Rasheed, and other government officials.

But, Segilola Resources Operating (SROL) was represented by Segun Lawson, MD/CEO; Austin Menegbo, Country Director; Folorunsho Adeoye and Kayode Aderinokun, Non-Executive Directors.

Ruth Tene Natsa

Ruth Tene, Assistant Editor, Agric/Solid Minerals/INEC Ruth Tene is an award-winning journalist with over 15 years experience in developmental reporting across several newsrooms, as a reporter, editor and other managerial roles. She holds a Postgraduate Diploma in Journalism from the University of Maiduguri among several other certifications She has attended several trainings and certifications both locally and internationally and has been recognized for her impactful work in humanitarian reporting, receiving the Gold Award for Humanitarian Services from the Amazing Grace Foundation. She is also a recipient of the Home Alliance Fellowship, reflecting her commitment to fostering a more humane, safer and more sustainable planet. An active member of professional journalism bodies, Ruth is affiliated with the Nigeria Union of Journalists (NUJ), the National Association of Women Journalists (NAWOJ), and the Agricultural Correspondents Association of Nigeria (ACAN), where she continues to advocate for excellence, ethical reporting, and development-focused journalism.