Mr. Dele Alake, Minister of Solid Minerals Development, cautioned against state governments’ arbitrary shutdowns of mining operations, stressing that such actions could thwart efforts to attract Foreign Direct Investments (FDI). He announced a fact-finding committee to investigate the dispute between Osun State and Thor Explorations Limited over taxation issues. Alake affirmed that mining regulations are under federal jurisdiction, urging cooperation between both parties. He emphasized the importance of maintaining operational continuity for economic stability and worker livelihoods.
The Minister of Solid Minerals Development, Mr. Dele Alake, has expressed significant concern regarding the arbitrary shutdown of mining activities by state governments, emphasizing that such actions could hinder the federal government’s efforts to attract Foreign Direct Investments (FDI) in Nigeria’s solid minerals sector. Mr. Alake made these remarks during the announcement of a fact-finding committee aimed at resolving the dispute between the Osun State government and Thor Explorations Limited concerning taxation and operational issues In a statement released by Segun Tomori, the Special Assistant on Media to the Minister, Alake reiterated that mining operations fall under the exclusive jurisdiction of the federal government. He highlighted the potential negative impact of state-imposed closures on the investment climate, which could discourage foreign investors and lead to divestment by existing stakeholders. To facilitate a resolution, Mr. Alake has appointed a committee led by Dr. Mary Ogbe, Permanent Secretary of the Ministry, tasked with investigating the allegations and counter-allegations between the Osun State authorities and Thor Explorations. Upon providing recommendations, he urged both parties to collaborate and ensure that mining operations continue while the matter is addressed. Furthermore, the Minister pointed out that the federal government has been actively promoting investment opportunities in the solid minerals industry to bolster economic development. He warned that any disruption in production not only threatens economic growth but could also adversely affect the livelihoods of workers. In his appeal, Alake called upon Osun State Governor, Senator Ademola Adeleke, and the management of Thor Explorations to prioritize peace and industrial harmony in consideration of the workers dependent on the operations.
The context of this article revolves around Nigeria’s economic strategy to enhance Foreign Direct Investment (FDI) in the solid minerals sector. The Nigerian government has positioned mining operations as a key area for investment. However, the recent confrontations between state governments and mining companies have raised alarms regarding the stability of this sector. The federal government’s concern about the implications of state-level disruptions reflects a broader strategy to maintain an attractive investment climate and promote economic growth through the mining industry. The formation of a fact-finding committee illustrates an immediate effort to address disputes that could threaten this sector’s viability.
In summary, Mr. Dele Alake has highlighted the significant risks posed by the indiscriminate closure of mining operations by state authorities to Nigeria’s quest for increased Foreign Direct Investment in the solid minerals sector. By forming a fact-finding committee to address ongoing disputes and advocating for cooperation among stakeholders, the federal government aims to preserve industrial harmony and reinforce its commitment to fostering a favorable investment climate. Such actions are crucial for sustaining economic growth and supporting the livelihoods of workers in the mining industry.
Original Source: www.arise.tv
