Osun Govt challenges Thors Explorations on local tax obligations
By Ismail Azeez, Osogbo
The Osun State government has stated that Thors Explorations Limited cannot evade local taxes by claiming that mining operations fall under the exclusive legislative list.
This clarification follows the recent sealing of the business premises of Segilola Resources Operating Limited, a subsidiary of Thors Explorations Limited and a gold mining company listed on the London and Toronto Stock Exchanges. The action was taken due to alleged tax violations and operational issues.
In a statement released on Sunday by Governor Adeleke’s spokesperson, Olawale Rasheed, the governor expressed his support for the Federal Ministry of Mines’ intervention regarding the state’s tax disputes with Thors Explorations Limited.
He emphasised that the state has validated its claims within the context of the Constitution and applicable laws.
“The Governor, who had earlier reached out to the Minister of Mines, Dele Alake, on the phone, said the state supports all efforts to drive Foreign Direct Investment into Nigeria,” the statement read. “However, investors have a duty to be transparent, obey local laws, and protect the environment from degradation.”
Governor Adeleke noted that discussions and negotiations with Thors Explorations have been ongoing since 2023, but no satisfactory outcomes have been achieved. He stated that Segilola Resources Operating Limited has accumulated tax liabilities of N3.25 billion, with a Demand Notice issued in April 2024.
The governor asserted that Osun has the legal right to collect tax liabilities and pointed out that Thors Explorations is operating six other companies on-site without proper disclosure to the state for tax and environmental accountability. He listed these companies as follows: SINIC Engineering Limited, ATF Consulting Limited, Monument Nigeria Limited, Rabaa Cleaning Limited, Deep Rock Drilling Services, and CEFO Security Limited.
Further, the governor highlighted that Thors Explorations Limited confirmed that Osun holds 5,192,896 shares in Thors Explorations, United Kingdom, insisting that the state is entitled to collect financial returns as a shareholder.
While lamenting the extensive environmental degradation caused by Thors’ mining activities in Osun State, Governor Adeleke stated that the company has an obligation to fund environmental reclamation, as environmental issues are on the concurrent legislative list.
“Osun State has a robust partnership with the Federal Ministry of Mines. Our state has several mining licences. So, we are critical stakeholders with a deep understanding of the laws and the Constitution. Our action is to get what is due to our state as affirmed by extant laws and practices,” he said.
He added, “We have a robust ease of doing business environment, and we have several investors in various sectors of our state economy. We are only opposed to a lack of transparency and accountability in the operation of the mining sector. Local laws must be respected and obeyed, as is the practice in Europe and North America, and the environment must be reclaimed.
“So we look forward to receiving the Federal fact-finding team. We have prepared our position. Thors cannot hide under mining being on the exclusive legislative list to avoid local tax, deny shareholders their rights, and violate our environment with impunity,” the statement read.
