The House of Representatives Committee on Solid Minerals Development has condemned the actions of two Chinese companies that owe the Federal Government over ₦15 billion in Value Added Tax (VAT).
The Committee Chairman, Jonathan Gaza, revealed this during the Ministry of Solid Minerals Development ministerial retreat in Abuja on Friday.
According to Gaza, an investigation by the House found that the Chinese companies claimed they didn’t pay VAT to the Nigerian government.
“When confronted by members of the House, the Chinese nationals said, “They do not pay VAT to the Nigerian government’,” Gaza said as quoted by Channels TV.
“This is appalling, considering the revenue loss and efforts of the present administration to revive the sector.”
Gaza commended the current administration’s efforts to revitalise the sector, citing the ₦38 billion and over $800 million in Foreign Direct Investment generated in 2024.
Meanwhile, the Minister of Solid Minerals Development, Dele Alake, has announced plans to crack down on state governments interfering in mining activities.
Alake stated that he has informed President Bola Tinubu about the issue and has been given the green light to take action.
“Over the years, we have witnessed sub-nationals issuing directives and regulating mining activities, and even more alarming is the increase rate in recent times,” Alake said.
“This sends a wrong message to investors because state governments don’t have the right to stop mining activities or seal up mining sites.”
Alake warned that the Nigerian government would take a tough stance on state governments that fail to comply with the constitution.
“I have informed Mr. President about this problem, and he has given me a go-ahead to go tough on state governments and ensure full compliance,” he said.
“So, in the coming days, weeks, you will hear more on this cause we will be going in tough.”