FG to investigate claims of tax evasion by mining companies – News – The Guardian Nigeria News – Nigeria and World News

The Federal Government has set up a committee to investigate the tax and operational disputes between the Osun State Government and Segilola Resources Operating Limited (SROL), a subsidiary of Thor Explorations limited.

The Minister of Solid Mineral Development, Dr. Dele Alake, made this known in Abuja on Friday in a statement by his Special Assistant on Media, Segun Tomori.

Alake said the committee was established to engage both parties with the aim of resolving the dispute and restoring industrial harmony.

The News Agency of Nigeria (NAN) reports that the Osun State Government on September 30, sealed the premises of SROL, following a court order that allowed it to seize the company over several blatant tax violations and other operational matters.

The state government had accused the company of unethical business practices and tax evasion worth about $1.9 million.

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He said the committee would be chaired by Dr. Mary Ogbe, the Permanent Secretary of the ministry.

According to him, the committee will consist of representatives of the Federal Inland Revenue Service, the Ministry of Labor and Employment and the National Association of Chambers of Commerce, Industry, Mining and Agriculture.

He emphasized that the Federal Government has presented investment opportunities in the solid minerals sector to the global audience.

However, he warned that the closure of mining operations by sub-national companies could undermine efforts to attract foreign direct investment (FDI) and trigger disinvestment.

“The arbitrary closure of mining operations by subnational companies increases the risk of discouraging foreign direct investment and, even worse, possible divestments by existing companies.

“Mining is on the exclusive legislative list. The Ministry of Solid Minerals should be consulted before taking such disruptive measures,” he said.

The Minister reiterated the Federal Government’s determination to open up the Nigerian landscape to boost economic growth, increase employment and facilitate community development.

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He claimed that any interruption of industrial production could undermine the goals of economic prosperity.

Alake urged both sides to cooperate with the committee in discharging their duties.

He added that while the problems were being resolved, production at the company should continue.

“I hereby call on Governor Ademola Adeleke of Osun and the management of Thor Exploration Limited to advocate for peace and industrial harmony in the interest of the workers.

“I want them to think of a large number of relatives who could be adversely affected by the closure of the factories,” he said.