The House of Representatives Committee on Solid Minerals Development has expressed concern over the conduct of some foreign nationals operating in Nigeria’s solid minerals sector, particularly two Chinese firms accused of owing over ₦12 billion in unpaid Value Added Tax (VAT) to the Federal Government.
Committee Chairman, Jonathan Gaza, raised the issue during a ministerial retreat organized by the Ministry of Solid Minerals Development for top officials and staff in Abuja on Friday.
Gaza, while withholding the names of the companies involved, revealed that the discovery emerged from an ongoing investigation by the House. According to him, when questioned, representatives of the Chinese companies claimed they do not remit VAT to the Nigerian government.
He described the situation as unacceptable, especially at a time when the government is working to boost revenue and revive the sector.
Despite the concerns, Gaza commended the current administration for its efforts to reposition the solid minerals sector, noting that it generated ₦38 billion in 2024 and attracted over $800 million in Foreign Direct Investment (FDI).
Speaking at the event, Minister of Solid Minerals Development, Dele Alake, disclosed that President Bola Tinubu had authorized him to take decisive action against state governments interfering in mining operations.
Alake highlighted that many states have continued to issue directives and regulate mining activities in violation of the Nigerian Constitution. He emphasized that mining falls under the Exclusive Legislative List in the 1999 Constitution and should, therefore, be exclusively managed by the Federal Government.
According to the minister, despite engaging with state governors on the matter, the problem of non-compliance persists.
“Over the years, we have seen sub-national entities issuing directives and attempting to regulate mining activities. What’s even more concerning is the growing frequency of such interference,” Alake stated.
“This creates a negative perception among investors. State governments do not have the legal authority to halt mining operations or seal mining sites.”
“I have reported this matter to Mr President, and he has given me the mandate to act decisively. So, in the coming days and weeks, you will be hearing of strong actions taken to enforce compliance,” he added.
