For years, the mining industry has drawn attention for its role in local economies and the importance of following regulations.
As governments work to ensure companies pay their fair share of taxes, issues of compliance have become more significant.
In Osun State, the government has acted against companies that do not meet their legal obligations.
A notable case is that of Segilola Resources Operating Limited, which is facing legal action for various tax violations.
This action followed an order from an Osogbo Chief Magistrates Court, presided over by Dr. Segun Ayilara, which granted the State Government’s request to take this step due to various tax violations.
The government accused the company of failing to fully disclose the employees involved in its business activities.
It also claimed that the company obstructed tax processes by not providing timely tax information and documents.
Osun Mining Tax Invasion
A statement from the State Commissioner for Information and Public Enlightenment, Mr. Kolapo Alimi, noted that Segilola Resources is a major player in mining and mineral exploration in the state.
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The company is a subsidiary of Thors Explorations Limited, which is listed on the London and Toronto Stock Exchanges.
Despite several demands, meetings, and consultations, the company did not comply with tax regulations.
Osun Mining Company Closure
As a result, the Attorney-General of Osun State sought a court order to seal the company until it pays the owed taxes from 2019 to 2023 into the state government’s account.
The Osun government expressed concern that while some companies were making billions of naira in the mining sector, they had failed to pay the state what it was owed.
Alimi stated: “While the issue of shareholding values due to the acquisition of Osun State’s interest in Tropical Mines is purely commercial, we will continue to hold the company responsible for all its actions”.