Mr. Dele Alake, Minister of Solid Minerals Development, has warned that indiscriminate closures of mining operations by state governments could jeopardize Nigeria’s efforts to attract Foreign Direct Investments (FDI). He announced a fact-finding committee to resolve issues between the Osun State government and Thor Explorations Limited regarding taxation and operational matters, asserting that mining regulations are under federal jurisdiction. Alake emphasized the importance of maintaining industrial activities to support economic growth and employment.
The Minister of Solid Minerals Development, Mr. Dele Alake, has issued a notable warning concerning the arbitrary shutdown of mining operations by state governments, emphasizing that such actions could severely hinder the federal government’s initiatives to attract Foreign Direct Investments (FDI) into Nigeria. This declaration was made in the context of a dispute involving the Osun State government and Thor Explorations Limited, which operates the Segilola Resources Operating Limited, regarding taxation and operational issues. Alake made it clear that the regulation and management of mining operations fall exclusively under the jurisdiction of the federal government, and he underscored the importance of consulting the Ministry of Solid Minerals prior to any significant disruptions in the mining sector. To address the ongoing conflict, a fact-finding committee has been established, led by Dr. Mary Ogbe, the Permanent Secretary of the Ministry, to mediate between the involved parties and seek an amicable solution while preserving industrial harmony. In his statements, Alake noted that the federal government has been actively promoting investment opportunities in the solid minerals sector internationally and expressed concern that the indiscriminate closure of mining operations could lead to a decrease in foreign investments, as well as prompt existing companies to divest. Furthermore, he called on all relevant parties—the Governor of Osun State, Senator Ademola Adeleke, and Thor Exploration Limited—to collaborate and prioritize a peaceful resolution, highlighting that disruptions in industrial activities would ultimately harm economic growth and employment prospects.
The commentary by Mr. Dele Alake arises in the context of tensions between state and federal governance regarding the mining industry in Nigeria. The federal government is responsible for promoting and managing the mining sector under national legislation, while state governments implement localized regulatory measures. The ongoing dispute between Osun State and Thor Explorations Limited reflects broader concerns about the governance of natural resources and the need for a cohesive approach to attract foreign investments. The urgency of stabilizing the mining sector is underscored by Nigeria’s ambitions to enhance economic development through FDI, making it crucial to maintain productive collaborations among all stakeholders involved in the mining sector.
In summary, Mr. Dele Alake has called attention to the potentially detrimental effects of state-level mining operation shutdowns on Nigeria’s ability to secure foreign investments. His establishment of a committee reflects a commitment to resolving conflicts between state and private companies while ensuring that mining operations continue to bolster the economy. The future of FDI in Nigeria’s solid minerals sector hinges on sustained industrial activity and cooperative governance among stakeholders, thereby enhancing the nation’s economic growth prospects.
Original Source: www.arise.tv
