The Osun State Government has initiated a series of actions against the Segilola Gold Project, operated by subsidiaries of Thor Explorations Ltd, a UK-based company listed on the Toronto Stock Exchange.
According to a press statement released by the Commissioner for Information and Public Enlightenment, Oluomo Kolapo Alimi, the state is accusing the company of tax evasion, environmental violations, and questionable business practices related to employment and shareholding structures.
Speaking on behalf of the government, Prof. Lukman Jimoda, the Special Adviser to the Governor on Mining and Mineral Resources, outlined the state’s findings from its investigation. According to Prof. Jimoda, the investigation uncovered several unethical business practices, including the alleged use of proxies, failure to comply with environmental laws, and outsourcing operations to undisclosed third parties without proper documentation.
Prof. Jimoda stressed that, as per the Nigerian constitution, environmental oversight falls under the concurrent list, allowing both the federal and state governments to assess the environmental impacts of corporate activities. He expressed concerns over the environmental risks posed by the Segilola project, mentioning issues such as particulate emissions and possible acid drains from waste rocks, which could have detrimental effects on the state’s ecosystem.
Tax evasion has emerged as a central point of contention, with the government accusing the company of refusing to comply with national tax laws like the Personal Income Tax Act (PITA) and the Company Income Tax Act (CITA). Despite the project’s significant production since 2019, the government claims it has not received its due revenue from the company for over three years.
The state is demanding the payment of accrued taxes and environmental levies, as well as proper documentation from all third-party contractors involved in the project.
Prof. Jimoda emphasised that “the government is prepared to take necessary actions to ensure compliance and safeguard the state’s environmental and economic interests.”
The financial implications of these allegations were further highlighted by Dr. Wale Bolorunduro, the Financial Consultant to the Office of Mining and Mineral Resources. He noted that the state’s concerns go beyond environmental issues, focusing heavily on the company’s alleged failure to meet its financial obligations.
According to Dr. Bolorunduro, “The refusal to remit taxes from both direct employees and service providers, as well as the evasion of other financial obligations, highlights a deeper issue of corporate governance and transparency.
Particularly troubling is the claim that Osun State’s interests in Tropical Mines Ltd were strategically diminished without due financial compensation, raising questions about the fairness of the company’s practices in Nigeria versus its compliance with international standards in the UK and Canada, where it is publicly listed.”
Governor Ademola Adeleke’s administration has made it clear that while it welcomes investment, it will not tolerate companies bypassing their financial and legal obligations.
Addressing public concerns, Alimi denied allegations that the Adeleke family has any involvement in the management or operations of the Segilola Gold Project. He clarified that those holding a stake or the other in the gold firm are shortchanging the Osun state government, assuring that the administration is committed to ensuring that the state gets its fair share from companies operating within its borders.
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