Osun State Governor, Ademola Adeleke, has reiterated the state’s legal right to collect taxes from Thor Explorations Limited, insisting that the company’s operations fall under the provisions of the Nigerian Constitution and applicable laws.

Adeleke, however, welcomed the intervention of the Federal Ministry of Mines in resolving the tax dispute, emphasizing the state’s willingness to support foreign investments, provided they operate transparently and adhere to local regulations, including environmental standards.

In a statement issued by his spokesperson, Olawale Rasheed, on Sunday, the governor disclosed that he had earlier reached out to the Minister of Mines, Dele Alake, regarding the ongoing dispute. He stressed that while Osun State is committed to encouraging Foreign Direct Investment, it must be on the condition that investors comply with local laws and take responsibility for environmental protection.

The governor lamented that since discussions with Thor Explorations began in 2023, no progress had been made, despite ongoing negotiations.

He revealed that Segilola Resources Operating Limited, a subsidiary of Thor Explorations, had accrued tax liabilities amounting to N3.25 billion, with a demand notice issued in April 2024.

Adeleke further alleged that Thor Explorations was operating six other companies on the same site without disclosing them to the state government for taxation and environmental accountability purposes.

The companies, according to the governor, include SINIC Engineering Limited, ATF Consulting Limited, Monument Nigeria Limited, Rabaa Cleaning Limited, Deep Rock Drilling Services, and CEFO Security Limited.

He also noted that Thor Explorations had confirmed Osun State holds 5,192,896 units of shares in Thor Exploration UK, and as such, the state is entitled to collect its financial benefits as a shareholder.

The governor expressed concern over the environmental degradation caused by the company’s mining activities and insisted that Thor Explorations must pay for the environmental reclamation of the affected areas, as required under Nigerian law.

“Osun State enjoys a strong partnership with the Federal Ministry of Mines. We hold several mining licenses and are key stakeholders in the sector with a deep understanding of both the laws and the constitution. Our actions are guided by the need to secure what is legally due to our state, as stipulated by existing laws and practices,” Adeleke stated.

He added, “We maintain a favorable business environment for investors across various sectors. However, we will not tolerate a lack of transparency and accountability in the mining sector. Local laws must be respected, just as they are in Europe and North America, and the environment must be properly reclaimed after mining activities.”

Adeleke further welcomed the visit of the Federal Government’s fact-finding team, stressing that Osun is prepared to present its case.

“Thor Explorations cannot use the exclusive legislative list as a shield to evade local taxes, deny shareholders their rights, and degrade our environment with impunity,” the governor concluded.