Osun Governor Affirms State’s Right to Tax Thor Explorations

The governor revealed his prior communication with Minister of Mines Dele Alake regarding the matter

Ademola Adeleke

Osun State Governor, Ademola Adeleke, has reaffirmed the state’s legal authority to impose taxes on Thor Explorations Limited, citing compliance with the Nigerian Constitution and relevant laws.

Welcoming the Federal Ministry of Mines’ intervention in the ongoing tax dispute, Adeleke highlighted the state’s commitment to attracting foreign investments, provided they adhere to local regulations and environmental standards.

In a statement from his spokesperson, Olawale Rasheed, the governor revealed his prior communication with Minister of Mines Dele Alake regarding the matter. He noted that while Osun State aims to foster Foreign Direct Investment, compliance with local laws and environmental responsibilities is crucial.

Adeleke expressed frustration over the lack of progress in discussions with Thor Explorations since 2023 and disclosed that its subsidiary, Segilola Resources Operating Limited, owes N3.25 billion in taxes, with a demand notice issued in April 2024. He also alleged that Thor Explorations is operating six other unreported companies at the same site, potentially evading taxation.

Furthermore, Adeleke pointed out that the state holds shares in Thor Exploration UK, emphasizing its right to financial benefits as a shareholder. He raised concerns over environmental degradation caused by the company’s mining activities, insisting on the need for remediation as required by Nigerian law.

“We maintain a favorable business environment for investors. However, we will not tolerate a lack of transparency and accountability in the mining sector,” Adeleke stated, underscoring the need for compliance with local laws and environmental reclamation.

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