The Osun State government has expressed gratitude to the Minister of Mines for stepping in to mediate the ongoing tax dispute between the state and Thor Exploration Limited, a foreign investor in the state’s mining resources.
According to a statement by the governor’s spokesperson, Olawale Rasheed, the state has legitimate claims based on the constitution and relevant laws regarding the tax obligations of Thor Exploration.
State’s Commitment to Law and Environmental Protection
Rasheed emphasized that while Osun State is committed to protecting its environmental resources and preventing degradation, it also seeks to support Nigeria’s agenda to attract foreign direct investment (FDI) in the mining sector. The state’s objective is to ensure that laws are followed, particularly in relation to taxation and environmental responsibility.
Accumulated Tax Liabilities
The dispute, which has been ongoing since 2023, revolves around Thor Exploration’s tax liabilities. Governor Adeleke stated that despite attempts at negotiation, the company has not settled its dues: “Segilola Resources Operating Limited, a subsidiary of Thor, has accumulated tax liabilities amounting to N3.25 billion, with a demand notice issued in April 2024.”
Unreported Operations of Additional Companies
Further complicating the issue, Thor Exploration has allegedly been operating six other companies on-site without proper disclosure for tax and environmental accountability. These companies include SINIC Engineering Limited, ATF Consulting Limited, Monument Nigeria Limited, Rabaa Cleaning Limited, Deep Rock Drilling Services, and CEFO Security Limited.
Osun State’s Stake in Thor Exploration
Governor Adeleke also disclosed that Osun State owns 5,192,896 shares in Thor Exploration Limited, United Kingdom, which entitles the state to receive financial returns as a shareholder. The state expects to collect these benefits in alignment with its investment in the company.
Environmental Degradation and Legal Compliance
Governor Adeleke highlighted the environmental degradation caused by Thors’ mining activities, insisting that the company must fund environmental reclamation efforts, as mandated by law. He asserted that Osun State has a strong partnership with the Federal Ministry of Mines and several mining licenses, making it a critical stakeholder knowledgeable about the relevant laws.
He emphasized that local laws must be respected, and accountability in the mining sector is crucial for maintaining a conducive business environment. The governor expressed readiness to engage with a federal fact-finding team, stating, “Thors cannot hide under the exclusive legislative list to evade local tax, deny shareholder rights, and harm the environment.”
Federal Ministry’s Caution on Foreign Investment
In light of the tensions between the Osun State Government and Thors Explorations, the Federal Ministry of Solid Minerals Development cautioned against actions that could deter foreign investment. This warning followed the Osun government’s closure of Segilola Resources Operating Limited (SROL) for tax violations and unethical practices. Minister Dele Alake voiced concerns about the potential negative impact on Nigeria’s efforts to attract foreign direct investment in the mining sector.
