THE House of Representatives Committee on Solid Minerals Development on Friday decried the attitude of some foreign nationals to the solid minerals sector, particularly two Chinese companies who, it said, are owing the Federal Government over ₦15 billion Value Added Tax (VAT).
Jonathan Gaza, the committee’s chairman, stated this in Abuja during the Ministry of Solid Minerals Development ministerial retreat for top management and other staff of the ministry.
Though he did not disclose their names, Gaza explained that the discovery came to light during an investigation conducted by the green chamber.
He stated that when confronted by members of the House, the Chinese nationals said “they do not pay VAT to the Nigerian government”.
This, according to him, is appalling, considering the revenue loss and efforts of the present administration to revive the sector.
He, however, commended the present administration for ongoing efforts to revitalize the sector, particularly the revenue accrued in 2024 to the tune of ₦38 billion and over $800 million in Foreign Direct Investment.
On his part, the Minister of Solid Minerals Development, Dele Alake, said President Bola Tinubu has given him a go ahead to go after state governments interfering in mining activities in their various states
He lamented the huge challenge faced by the ministry due to state governments issue directives and regulating mining activities in their states
This action, according to the minister, contradicts the 1999 constitution of the Federal Government where mining activities belongs to the exclusive legislative list and as such should solely be regulated and controlled by the federal government.
He stated that he has made several efforts to address this issue such as meeting with state governors but regardless there is still a high level of non compliance.
“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.
“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. So in the coming days, weeks you will hear more on this cause we will be going in tough.”
