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, 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.
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.
Reiterating the federal government’s stance, 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.
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, which oversees compliance with regulations.
