The Federal High Court in Abuja has granted an Interim Injunction in favour of Segilola Resources Operating Limited (SROL), restraining the Osun State Government and its officials from interfering with the company’s mining operations.
The order was issued by Justice Emeka Nwite on October 3, 2024, following an ex parte motion filed by the company.
The injunction prevents the Osun State Government from disrupting the gold mining operations of Segilola Resources or denying the company access to its mining site.
This comes amidst ongoing allegations against the company regarding tax liabilities and environmental concerns, accusations that SROL has strongly denied.
The injunction is set to remain in effect pending the hearing of a Motion on Notice for an Interlocutory Injunction scheduled for October 17, 2024.
Legal experts suggest that the court’s ruling reinforces the importance of respecting judicial processes in settling disputes, particularly in sensitive mining sectors where operational disruptions can have far-reaching economic implications.
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With the matter now before the court, stakeholders are looking for an interpretation of the relevant provisions of the law as both parties maintain the status quo.
Meanwhile, the Federal Government through the Ministry of Solid Minerals Development has initiated an investigation into the matter between Segilola Resources and the Osun State Government to restore operational and industrial harmony in the State.
In a recent statement, the Minister for Solid Minerals, Dr. Dele Alake emphasised the importance of protecting investments in the Nigerian mining sector, stressing that mining falls under the exclusive legislative list, and the Ministry of Solid Minerals should be consulted before any disruptive actions are taken.
“I want to emphasise that the Federal Government has been actively promoting investment opportunities in the solid minerals sector around the world. It is crucial to recognise that closing down mining operations by subnational governments could jeopardise our efforts to attract Foreign Direct Investments (FDI) and may even lead to divestment by existing companies” Alake cautioned.
Alake urged both parties “to cooperate with the fact-finding team and allow production to continue while we work through these issues. It is essential that both parties pursue peace and industrial harmony for the benefit of the workers and their families who could be negatively affected by the closure of operations at the factory”.
Segilola Resources, which operates Nigeria’s first commercial gold mine, is regarded as one of the country’s most successful mining ventures. The company has consistently maintained that it complies with all relevant regulations and remains committed to upholding its responsibilities as a law-abiding corporate entity. Industry observers believe that the resolution of this case could have broader implications for Nigeria’s mining sector and investor confidence.
