The House of Representatives Committee on Solid Minerals Development has revealed that two Chinese companies operating in Nigeria owe the Federal Government more than ₦15 billion in unpaid Value Added Tax (VAT).
Chairman of the committee, Hon. Jonathan Gaza, made the disclosure during a ministerial retreat organised by the Ministry of Solid Minerals Development in Abuja on Friday. He described the conduct of the companies—whose names were not disclosed—as “appalling” and a major contributor to revenue leakages in the sector.
“When confronted, the Chinese nationals claimed they do not pay VAT to the Nigerian government,” Gaza said, expressing concern over the attitude of some foreign investors toward the country’s laws and financial obligations.
The revelation comes amid intensified efforts by the Tinubu administration to revive Nigeria’s mining sector. According to Gaza, the sector generated ₦38 billion in revenue in 2024 and attracted over $800 million in foreign direct investment.
Also speaking at the retreat, Minister of Solid Minerals Development Dele Alake warned state governments against interfering in mining operations, describing their actions as unconstitutional and disruptive to national economic interests.
Alake said the 1999 Constitution places mining under the exclusive legislative list, giving only the Federal Government the authority to regulate the sector.
“Over the years, we have witnessed sub-nationals issuing directives and regulating mining activities. Even more alarming is the increase in this trend recently,” he said. “This sends the wrong message to investors.”
The minister said President Bola Tinubu has authorised him to clamp down on erring states, warning that enforcement measures would begin in the coming weeks.
“State governments don’t have the right to stop mining activities or seal up mining sites,” Alake declared. “We will be going in tough.”
