Daud Olatunji
The House of Representatives has raised the alarm over the failure of two Chinese companies operating in Nigeria’s solid minerals sector to remit over ₦15 billion in Value Added Tax (VAT) to the Federal Government.
Chairman of the House Committee on Solid Minerals Development, Jonathan Gaza, made the disclosure on Friday in Abuja during a ministerial retreat organised by the Ministry of Solid Minerals Development for its senior officials.
Although Gaza withheld the names of the firms, he described their actions as not only illegal but deeply troubling, especially at a time when the government is striving to boost revenue generation from the mining sector.
According to him, the companies blatantly told the committee that they “do not pay VAT to the Nigerian government,” a response he called shocking and unacceptable.
“This attitude is appalling, particularly in view of the huge revenue losses it represents and the current administration’s efforts to reposition the solid minerals sector,” Gaza stated.
He commended the Federal Government’s recent reforms in the sector, which he said had already yielded ₦38 billion in revenue in 2024, alongside attracting over $800 million in foreign direct investments.
Meanwhile, the Minister of Solid Minerals Development, Dele Alake, also used the event to express frustration over state governments’ interference in mining operations across the country.
Alake insisted that the 1999 Constitution places mining on the Exclusive Legislative List, making it a responsibility solely within the powers of the Federal Government.
He lamented that some governors continue to issue directives and even seal mining sites, acts he said send a “negative signal” to both local and foreign investors.
“I have informed Mr President, and he has given me a clear directive to go tough on state governments violating the constitution on this matter,” the minister declared.
Alake assured that enforcement actions would soon be taken against non-compliant states to ensure strict adherence to federal mining laws.
The revelations by the House and the Ministry underscore growing concerns about regulatory violations by foreign firms and the overlapping interests of federal and state authorities in Nigeria’s extractive industries.
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