Thor Explorations Ltd., through its Nigerian subsidiary Segilola Resources Operating Limited (SROL), has agreed to pay ₦1.2 billion to the Osun State Government, addressing the undisputed portion of a Pay As You Earn (PAYE) tax assessment. This development follows mediation facilitated by the Federal Ministry of Solid Minerals Development.
Background of the Tax Dispute
In September 2024, the Osun State Government alleged that SROL had outstanding tax obligations amounting to ₦3.25 billion, citing non-compliance with tax documentation requirements. SROL contested these claims, asserting adherence to legal and regulatory obligations.
Mediation and Resolution
To resolve the impasse, the Federal Ministry of Solid Minerals Development intervened, establishing an Inter-Ministerial Fact-Finding Committee. The committee's report, released on March 25, 2025, concluded that SROL had complied with its legal and regulatory obligations, finding the initial ₦3.25 billion tax invoice unsubstantiated. A revised tax invoice of ₦98,347,105.18 was recommended, pending final reconciliation.
Commitment to Payment and Collaboration
Despite contesting the initial assessment, SROL agreed to remit the undisputed ₦1.2 billion in PAYE taxes. Austin Menegbo, Country Manager of SROL, expressed appreciation for the committee's efforts and reiterated the company's commitment to Osun State's development.
Shareholding and Environmental Considerations
During negotiations, SROL acknowledged Osun State's shareholding in the Segilola Gold Project, with the share certificate formally presented to Governor Ademola Adeleke. Additionally, both parties agreed to conduct a comprehensive environmental audit to address concerns about mining activities' impact.
The agreement between Thor Explorations Ltd. and the Osun State Government marks a significant step toward resolving tax disputes and fostering a collaborative relationship. This resolution underscores the importance of dialogue and mediation in addressing conflicts between corporate entities and governmental bodies, ensuring mutual benefits and sustainable development.
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