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N12bn VAT debt: Reps slams Chinese firms over defaults in solid minerals sector

The House of Representatives Committee on Solid Minerals Development has expressed concern over the attitude of some foreign nationals in the solid minerals sector, particularly two Chinese companies that owe the Federal Government over N12 billion in Value Added Tax (VAT).
The committee’s chairman, Hon. Jonathan Gaza, revealed this during the Ministry of Solid Minerals Development ministerial retreat in Abuja.
Hon. Gaza said that the discovery was made during an investigation conducted by the House of Representatives.
When confronted, the Chinese nationals claimed they did not pay VAT to the Nigerian government, which Gaza described as “appalling” considering the revenue loss and efforts to revive the sector.
Gaza, however, commended the present administration for its efforts to revitalize the sector, highlighting the revenue accrued in 2024, which includes N38 billion and over $800 million in Foreign Direct Investment.
On his part, the Minister of Solid Minerals Development, Dele Alake, discussed the challenge posed by state governments interfering in mining activities in their respective states.
Alake said that President Bola Tinubu has given him the go-ahead to address this issue, as it contradicted the 1999 constitution, which placed mining activities under the exclusive legislative list of the federal government.
Alake expressed his determination to ensure full compliance, having made several efforts to address the issue, including meeting with state governors.
He warned that state governments do not have the right to stop mining activities or seal up mining sites, and the ministry will take a tougher stance in the coming days.

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