By Dare Babajide
When it was said on Thursday 8th December 2022 that Governor Adeleke will on Monday 12th December 2022 inaugurate a committee on solid minerals, I made a post on Friday 9th December 2022 stating that the setting up and the inauguration of the committee marks the beginning of the pdp lead government derailing from their campaign promises.
Notwithstanding the call, the governor went ahead yesterday to inaugurate the committee and good enough, the incompetences of both the governor and his committee was again exposed to the world. An excerpt of the governor’s directive to the committee reads :
“ Osun state according to extant laws is entitled to 13 percent derivation from every ounce of gold extracted from our gold and other solid mineral fields.
Segilola and other operating companies are expected by law to pay Osun state 13 percent derivation on the value of gold and other solid minerals produced in the last 25 years. Till date, we have no record of any payment made by Segilola and other mining companies to Osun state. My administration is determined to recover every penny owed Osun state by companies operating in Osun gold fields”
The governor’s directive above irrevocably exposed either the unreadiness of the Adeleke lead government or the existing knowledge gaps about the inaugurated solid minerals committee members.
For the record, Governor Kayode Fayemi during his days as the Minister of Mines and Steel Development on Tuesday 27th September 2016 announced that states with active mining activities will be collecting 13% derivatives like their oil producing states. The question here now is “how come 2016 to 2022 become 25years in the dictionary of Governor Adeleke and his solid minerals committee”?
On Segilola Resources Operating Limited (SROL) that was verbally attacked by the directive, SROL is a subsidiary of Thor Exploration Limited (a West African focused gold exploration and development company listed on the Toronto Venture Exchange). As evident in the attached, the company was officially launched in Ilesha on Thursday, 19th March 2020…. So again, how come the year 2020 to 2022 was calculated as 25years by the governor and his advisers?
Yes! Segilola Resources Operating Limited had commenced operations now in Ilesha. Information at my disposal revealed that by the virtue of section 28, sub section 1 of 2007 Mining Act, Segilola is ENTITLED to 3 years tax holiday from the Federal government. In fact sub-section 2 of Section 28 permitted the tax holiday to be extended for a further period of 2 years. So if the governor and his committee is well informed, they will know that tax holiday everywhere in the world is a global standard /incentive used in luring investors to commence operation. Hence the outgone government in my opinion has NOT run fowl of any law by permitting Segilola to enjoy the incentive they are LAWFULLY ENTITLED to by the provision of Section 28 sub-section 1 – 3 of 2007 Mining Act.
Lastly, assuming without conceding that Segilola’s tax holiday has been exhausted, where did the governor and his inaugurated committee see it that the 13% derivative is paid by individual company? As stated in section 162, sub-section 2 of the Nigeria constitution, the 13% derivation fund comes FROM THE FEDERATION REVENUE to the communities through the state government… so is the governor or any member of the committee not aware that the 13% derivation request should be channeled to the Federal government and not the explorer?
In my one kobo advice, I will recommend that the governor come to the understanding of the fact that as far Osun governorship is concerned, the time of politics is over! We are in the era of governance!! And should the governor not competent enough to govern, he should surround himself with people that knows that governance is not about vendetta but about delivering on campaign promises.
As Egbon Adabanija Qomarudeen Idowu Mayegun once said, ” ale fi omugo je oye! Ologbon ni ao fi yika “.