Minister Alake Warns Against State Shutdowns of Mining Operations…

Minister Dele Alake warns that arbitrary mining shutdowns by state governments could jeopardize Nigeria’s efforts to attract Foreign Direct Investment (FDI). He announced a fact-finding committee to mediate a dispute between the Osun State government and Thor Explorations Limited regarding operational challenges. Alake emphasized that mining regulations are under federal jurisdiction and called for collaboration to resolve issues without halting production.

In a recent statement, the Minister of Solid Minerals Development, Mr. Dele Alake, expressed his concerns regarding the frequent and indiscriminate shutdown of mining operations by state governments, emphasizing that such actions could significantly undermine the federal government’s efforts to attract Foreign Direct Investment (FDI). This statement came in light of a fact-finding committee that was established to investigate the ongoing dispute between the Osun State government and Thor Explorations Limited regarding taxation and operational challenges. Minister Alake, through his Special Assistant on Media, Segun Tomori, articulated that mining regulations fall under the exclusive jurisdiction of the federal government, thereby necessitating consultation before any state-level closures occur. He stated, “Indiscriminate closures of mining operations by sub-nationals raises the risk of discouraging foreign direct investments and even worse, possible divestment by existing companies.” The minister underscored the federal government’s commitment to expanding productive economic activities nationwide to foster growth, increase employment opportunities, and support community development. He cautioned that the cessation of industrial activities would adversely impact economic prosperity and disallow workers from earning their livelihoods. To facilitate resolution between the parties involved, Minister Alake urged both the Osun State government and Thor Explorations Limited to collaborate with the fact-finding committee, allowing mining operations to continue while addressing ongoing issues. He specifically called for a pursuit of peace and dialogue, particularly for the sake of the workers and their families who may face hardships due to operational closures. The fact-finding committee will include representatives from the Federal Inland Revenue Service (FIRS), the Ministry of Labour and Employment, and the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

The article discusses the critical implications of state-level mining operation shutdowns in Nigeria, particularly their potential to hinder Foreign Direct Investment (FDI). It highlights the federal government’s exclusive control over mining regulations and underscores the necessity for coordination between state authorities and the federal government. The dispute involving the Osun State government and Thor Explorations Limited serves as a backdrop to the minister’s concerns about the broader impact of such shutdowns on national economic growth and stability.

In summary, the statements made by Minister Dele Alake reflect a serious concern regarding the impact of state government actions on the mining sector in Nigeria. The establishment of a fact-finding committee underscores the government’s intent to resolve disputes amicably while prioritizing economic growth and stability. Minister Alake’s appeals for cooperation between state authorities and private firms highlight the importance of maintaining industrial harmony to foster an environment conducive to foreign investments.

Original Source: www.arise.tv