Weaponisation of state machinery against Segilola Resources

BY BULUS KATAKO

As someone from Plateau State, where the solid minerals sector has long been exploited without fostering lasting economic benefits, I have always believed that Nigeria’s untapped mineral wealth could fuel the nation’s growth. With more than 44 types of solid minerals, Nigeria is endowed with resources that, if managed responsibly, could lead to transformative progress.

That potential appeared closer to reality when Segilola Resources Operating Limited (SROL) launched Nigeria’s first commercial gold mine in Osun State. SROL invested millions of dollars in transforming a dormant project into a viable, revenue-generating business, attracting international investor interest to Nigeria’s mining sector and showing the world that Nigeria is indeed capable of fostering a productive, ethical mining industry. SROL’s accomplishments have earned it a place among Nigeria’s Top 10 non-oil exporters, marking the first time gold has made it onto the list – a win for Nigeria’s economy and a crucial step in the country’s journey toward economic diversification.

Yet, despite these achievements, the Osun State Government (OSG) has launched a concerted attack on SROL through a string of public accusations, misrepresentations, and abuses of the judicial system. In a series of moves that can only be described as weaponizing state machinery, the OSG has repeatedly used its platform to discredit SROL, and in doing so, has undermined the economic stability and reputation of Osun State.

One of the OSG’s most egregious tactics has been its manipulation of the court system to push its agenda. In an unorthodox move, the OSG sought a magistrate court order to justify its actions against SROL. The magistrate court, cannot adjudicate on matters over a threshold limit of N10 million, making it an unusual venue for adjudicating complex corporate and regulatory disputes, such as the tax dispute of N3.2 billion in the Segilola/OSG matter. Such an approach suggests that the OSG was less interested in legal due process and more focused on leveraging the court as a tool for coercion. This misuse of judicial authority not only raises concerns about fairness but also sets a dangerous precedent for other states to employ similar tactics against companies operating within their borders.

Simultaneously, the OSG has weaponized media channels to amplify its baseless accusations against SROL, including claims of tax evasion and environmental degradation. Tax disputes are a standard part of doing business, and it has been confirmed that both parties were actively engaged in tax resolution talks to resolve any outstanding issues. Instead of following the established channels for tax resolution through to the end, however, the OSG abandoned the discussion mid-process and opted to publicize unproven claims, tarnishing SROL’s reputation and undermining investor confidence in Osun State.

Furthermore, the OSG’s environmental allegations lack endorsement from the Federal Ministry of Environment, the principal regulatory authority on environmental matters in Nigeria. Not only has the ministry refrained from supporting the OSG’s position, but the OSG has also cited reports linking environmental concerns to illegal mining in the area—activities entirely separate from SROL’s regulated operations. By continuing to conflate SROL’s actions with unrelated environmental issues, the OSG not only misleads the public but also deflects attention from the real environmental threats facing the community.

Perhaps most baffling is the OSG’s contradictory stance on SROL’s shareholding. Despite claiming a stake in SROL, the OSG has chosen to publicly undermine a venture in which it purportedly has an interest. This action reflects a concerning lack of regard for Osun State’s economic welfare, as it risks not only the viability of SROL but also discourages future investors wary of unpredictable state interference. The fact that SROL’s parent company is publicly listed adds to the gravity of this situation, as such behavior could send shockwaves through international investor networks, casting Nigeria in a negative light.

A quick look at SROL’s website reveals numerous community-centered projects. Beyond the compensation paid to project-affected persons, SROL has implemented livelihood restoration programs to support these communities, including fish farming, vegetable farming, and a cocoa rehabilitation program that provides improved-yield cocoa seedlings, agrochemicals, and necessary supplies. Notably, one of the videos on their site features a clip from an NTA broadcast showing Professor Jimoda, the Special Adviser to the Governor on Mining and Mineral Resources, commending SROL’s efforts and saying the company was “getting it right.” It raises a question: what could have prompted such a stark change in sentiment from the Osun State Government within just a few months?

In response to the escalating tension, the Federal Government established a fact-finding committee to mediate the conflict between SROL and the OSG. While this intervention was intended to ensure a fair and transparent resolution, the OSG has continued to press new allegations. Notably, the Federal Government has remained silent on the validity of these claims—an omission that suggests the matter remains unresolved and casts doubt on the OSG’s assertions of victory.

As the OSG continues its campaign against SROL, it is Osun State’s own image and economy that will suffer the greatest harm. Investors are acutely aware of how companies are treated in foreign jurisdictions, and the OSG’s actions raise legitimate concerns about the stability of doing business in Osun and Nigeria as a whole. By targeting SROL, the OSG is effectively undermining one of its own promising enterprises and risking Nigeria’s reputation as a viable investment destination.

The OSG’s actions display a pattern of legal manipulation, public defamation, and regulatory overreach that not only damages Osun State’s immediate economic prospects but also jeopardizes Nigeria’s broader ambitions to become a global mining powerhouse. The time has come for the OSG to cease this counterproductive crusade, return to constructive dialogue, and prioritize the long-term welfare of Osun and its people over short-term political theatrics.

Katako, a public affairs analyst, writes from Jos