The House of Representatives Committee on Solid Minerals Development has raised alarm over the alleged failure of two Chinese firms operating in Nigeria’s solid minerals sector to remit over ₦15 billion in Value Added Tax (VAT) to the Federal Government.
Chairman of the committee, Hon. Jonathan Gaza, made this known in Abuja on Friday during a ministerial retreat organised by the Ministry of Solid Minerals Development for top management staff.
Gaza, who declined to name the companies, said the revelation emerged during a recent investigation conducted by the House. According to him, the Chinese firms told lawmakers during questioning that they do not pay VAT to the Nigerian government.
“This is unacceptable and alarming, especially at a time the present administration is intensifying efforts to reposition the sector as a major revenue earner,” Gaza said.
He, however, commended the Federal Government for recent gains in the sector, disclosing that revenues accrued in 2024 have hit ₦38 billion, with over $800 million attracted in Foreign Direct Investments.
Speaking at the retreat, the Minister of Solid Minerals Development, Dr. Dele Alake, said President Bola Tinubu has given him the mandate to go after state governments who attempt to usurp federal powers by interfering in mining activities within their jurisdictions.
Alake expressed concern over what he described as increasing incidences of state governments issuing directives and attempting to regulate mining operations—an action he said directly contravenes the 1999 Constitution which places mining under the Exclusive Legislative List.
“Over the years, we’ve seen state governments acting beyond their constitutional limits by regulating mining activities. This has worsened in recent times,” the minister said.
“This development sends a wrong signal to investors. States do not have the constitutional powers to stop mining operations or seal mining sites.”
He said several engagements with state governors have failed to yield the desired cooperation and warned that the ministry would now take a tougher stance.
“I’ve informed Mr. President and he has given me the go-ahead to clamp down on these illegal interferences. In the coming days and weeks, Nigerians will hear more as we take decisive steps to restore order and compliance in the sector,” Alake said.
