Alake: State-Imposed Mining Shutdowns Undermine Nigeria’s Foreign Direct Investment Potential
The Minister of Solid Minerals Development, Mr. Dele Alake, has issued a warning against the arbitrary closure of mining operations by state governments, emphasizing that such actions could jeopardize the federal government’s efforts to attract Foreign Direct Investments (FDI).
Alake made this statement while announcing the formation of a fact-finding committee to investigate the conflict between the Osun State government and Thor Explorations Limited, the owner of Segilola Resources Operating Limited, regarding taxation and operational issues.
The warning was shared in a statement by the minister’s Special Assistant on Media, Segun Tomori, in Abuja on Saturday. Alake highlighted that mining operations and regulations fall under the exclusive jurisdiction of the federal government, not the state governments.
He has tasked the committee, led by the Ministry’s Permanent Secretary, Dr. Mary Ogbe, with examining the claims and counterclaims from both the Osun State government and the private company. The committee aims to engage both parties to resolve the dispute and restore industrial harmony.
The minister noted that the federal government has been actively promoting investment opportunities in the solid minerals sector globally and cautioned that state-imposed mining closures could derail efforts to attract FDI and potentially lead to divestment.
“Indiscriminate closures of mining operations by state governments heighten the risk of discouraging foreign direct investments and may lead to divestment by existing companies. Mining is governed by the exclusive legislative list, and the Ministry of Solid Minerals must be consulted before such disruptive actions are implemented,” Alake stated.
In related news, Alake remarked on the vital role of technology in improving Nigeria’s mining sector, as well as the influence of powerful individuals involved in illegal mining and banditry.
The minister reiterated the federal government’s commitment to enhancing productive activities nationwide to foster economic growth, increase employment, and promote community development. He warned that any halt in industrial production would undermine economic goals, deprive workers of income, and exacerbate adverse conditions.
Alake urged both parties to cooperate with the fact-finding team and allow production to continue while the issues are being addressed. He appealed to Osun State Governor Senator Ademola Adeleke and the management of Thor Exploration Limited to seek peace and industrial harmony in the interest of the workers and their families who may be negatively affected by the cessation of operations.
The fact-finding committee will include representatives from the Federal Inland Revenue Service (FIRS), the Ministry of Labour and Employment, and the National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA).
