KEY POINTS
- Osun State sealed Segilola Resources for tax evasion.
- The action followed a court order after the company failed to comply with tax demands.
- The government emphasized the importance of tax compliance among businesses benefiting from Osun’s resources.
The Osun State Government has sealed Segilola Resources Operating Limited over multiple tax infractions, marking a decisive move to enforce compliance among mining companies operating in the state. The action follows an order by an Osogbo Chief Magistrates Court, emphasizing the state’s commitment to ensuring companies fulfill their tax obligations.
Court order and Government action
Segilola Resources, a subsidiary of Thors Explorations Limited listed on the London and Toronto Stock Exchanges, faced the closure of its business premises on Monday.
This decision was based on a court order granted by Chief Magistrate Dr. Segun Ayilara, who permitted the state to take action against the company for its persistent failure to meet tax requirements.
The Osun State Government accused Segilola Resources of obstructing tax processes and failing to provide complete information regarding its employees, both direct and indirect, involved in business operations within the state. Despite multiple meetings, consultations, and demands for compliance, the company allegedly remained unresponsive and defiant.
According to Kolapo Alimi, the Commissioner for Information and Public Enlightenment, the court authorized the sealing of the company’s facilities until it clears outstanding tax liabilities accrued between 2019 and 2023.
“Segilola Resources is one of the major companies engaged in mining activities in Osun. Yet, they have consistently evaded their tax responsibilities despite making significant revenues,” said Alimi.
Economic concerns and legal measures
The state government has expressed concerns over mining companies that generate substantial income from Osun’s natural resources while failing to contribute their fair share to the state’s revenue.
“Many firms are making billions in revenue from the state but are evading the necessary dues that should benefit Osun,” Alimi added.
According to Punch, he pointed out that tax evasion by these companies deprives the state of critical funds needed to support development projects and public services. Alimi emphasized that while Osun welcomes businesses that invest in the state, these companies must comply with all tax obligations.
“Tax compliance is non-negotiable, especially for companies that utilize the state’s natural resources. We are committed to holding them accountable and ensuring they contribute fairly to the state’s economy,” he stated.
Ongoing efforts to enforce compliance
Segilola Resources is a key player in Osun’s mining sector, which has seen increased scrutiny as the state seeks to regulate and benefit from its natural wealth.
The state government has reaffirmed its resolve to uphold accountability, even as the issue of shareholding values due to Osun’s stake in Tropical Mines remains a subject of commercial negotiations.
Alimi stressed that the government will not shy away from taking similar actions against other defaulting firms. He further called on all companies operating within the state to adhere strictly to tax laws and regulatory guidelines to avoid disruptions to their business operations.
“The government will continue to engage companies for the mutual benefit of all stakeholders, but compliance with the law is not optional,” he said.
