FG Report on Segilola and Osun Govt’s Position: Separating Facts from Fiction

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By Emmanuel Kupoluyi

The Special Adviser on Mining and Mineral Matters to Governor Ademola Adeleke, Professor Lukuman Jimoda, recently reiterated that Osun State has a genuine legacy ownership dispute with Segilola Resources Operating Limited (Segilola) and its parent company, Thor Explorations Ltd (Thor). According to him, Osun State’s interest dates back to 1993, when the state invested in Tropical Mines Ltd (formerly Pineridge Limited), a company co-owned by Folorunsho Adeoye and Kayode Aderinokun—two close associates of Dr. Deji Adeleke and Governor Isiaka Adeleke.

While diversification into mining was commendable at the time, questions linger about why the state’s investment was routed through individuals serving in the government of Isiaka Adeleke in the early 1990s.

FG Committee Report: Analyzing the Osun Government’s Claims

The Federal Government (FG) recently released a comprehensive report on the Osun State–Segilola dispute. Despite the Adeleke administration’s media narrative suggesting a major victory, the findings indicate otherwise. The committee’s report discredited most of the claims made by the state government, revealing inconsistencies and inadequate evidence behind many of the allegations.

The Osun State Government, relying heavily on the controversial fact-finding report authored by former Commissioner of Finance Wale Bolorunduro, had presented claims against Segilola amounting to N92.5 billion, which included:

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• N25 billion: Alleged cash payments for shareholding tied to Tropical Mines Limited’s shares issued for Thor Exploration Limited.

• N10 billion: Financial consideration owed to co-owners of TML/Thor.

• N36.8 billion: Unpaid royalties allegedly due to TML.

• N3.2 billion: Outstanding taxes, including withholding tax, PAYE underpayment, and other levies.

• N7.5 billion: Environmental levies allegedly owed.

• N10 billion: Haulage fees for solid mineral transportation.

• 21.5% claim: Shareholding in TML/Thor.

• $1.3 million: Post-closing payments to TML and other shareholders in 2016 after acquiring the gold project.

FG Report: Findings on the Credibility of Claims

The FG Committee did not find sufficient evidence to substantiate any of these claims. The committee concluded that most of the allegations were unfounded and lacked the necessary documentation to back them up. It also identified Bolorunduro’s report, which fueled the state government’s position, as a key source of the dispute between Osun and Segilola.

Environmental Levies: Need for Policy Clarity

The committee dismissed the N7.5 billion environmental levy claim by Osun State, stating that it had no clear basis. Evidence presented showed that Segilola had already paid N32.5 million to Osun State for environmental levies between 2022 and 2024. The committee noted that the state’s decision to impose retroactive levies from 2019 contributed to the dispute and recommended that Osun revise its environmental protection laws to clearly define levies and avoid future ambiguities.

Investor Confidence: Need for Stability

The report expressed concerns that the frequent shutdowns of Segilola’s operations by Osun State created an atmosphere of uncertainty and portrayed the state as an unfriendly environment for investment. The committee urged President Bola Tinubu to advise Osun State to minimize undue interference in mining matters to sustain investor confidence and ensure that the mining sector continues to contribute to Nigeria’s GDP.

Mediation Efforts: Missed Opportunities for Resolution

The committee highlighted that Osun’s approach to the mediation process hindered progress. It noted that the state government’s aggressive media engagement and public statements disrupted efforts to establish a conducive environment for reconciliation and confidential disclosures.

Revisiting the Shareholding Issue: Unpacking the Details

The FG report also revisited the issue of Osun’s shareholding claim in Segilola. The Adeleke administration had presented the 5.1 million shares ceded to Osun by Thor as a significant win. However, the committee’s findings suggest a more complex narrative rooted in decisions made decades ago.

The Osun State Government claimed to have invested in Tropical Mines Ltd’s exploration and development until September 2016, when the state was allegedly sidelined during Thor’s acquisition of the company. Critical questions remain:

• When exactly did Osun State’s investment in Tropical Mines begin?

• How much did the state invest?

• Why was the transaction shrouded in secrecy, with no clear evidence of returns?

These unanswered questions highlight the need for further transparency and accountability.

Disparities in Shareholding: Understanding the Gaps

While Osun State has only 5.1 million shares, Folorunsho Adeoye and Kayode Aderinokun, who reportedly convinced Osun to invest in the venture over 30 years ago, now control a combined 44.5 million shares in Thor. Additionally, the FG report confirmed that Tropical Mines Ltd received $1.3 million (N2 billion) in post-closing payments in 2016, yet Osun State received nothing.

Reflecting on the Way Forward

The FG report underscores the need for Osun State to re-evaluate its approach to mining investments and adopt more structured frameworks for engaging with private sector partners. Moving forward, there is a need for:

• Greater transparency and accountability in documenting public investments.

• Improved coordination between state and federal authorities in handling mining-related disputes.

• Proactive efforts to protect state assets while fostering a conducive environment for investment.

The people of Osun deserve clear answers about what transpired with the Pineridge/Tropical Mines/Segilola/Thor transaction. A better understanding of the facts will not only ensure accountability but also help guide future policies to protect the economic interests of the state.