Home Nigeria News Reps accuse Chinese-owned firms of flouting Nigerian mining laws, threaten licence invalidation

Reps accuse Chinese-owned firms of flouting Nigerian mining laws, threaten licence invalidation

Members of the House of Representatives Committee on Solid Minerals have condemned what they said is growing disregard for Nigerian mining and environmental laws by mining companies, especially by firms linked to Chinese nationals.

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Chairman of the Committee, Jonathan Gaza, speaking at a sitting organised to discuss the matter at the National Assembly in Abuja, lamented the absence of company leaders at critical parliamentary sessions.

The committee is currently investigating alleged acts of illegal and unregulated mining practices.

Alluding to what he termed “commotious operations”, Gaza said the lawmakers are fed up with ‘evasive conduct’ by some mining company executives and has threatened to suspend the licences of firms that fail to comply with legislative oversight.

He said lawmakers were “taken aback by the brazen disregard” for national legislation while the company directors routinely ignored summons from the House of Representatives.

Many managing directors reportedly reside in China, leaving only technical staff to oversee local operations, he said.

Among the companies cited for failing to honour parliamentary invitations were Arab Contractors, Selsing Stone Limited, Homerset, Kaji Investments, Zeyin Jinja Investment Limited, Hasba Group of Companies, Viva Mines, Venus Mining Company, Tim Cornerstone, and Inorganic Earth (Saigon’s Investment Limited).

Gaza warned that companies that fail to appear before the committee by the end of the current session risk suspension or outright revocation of their mining licences. He stressed that no level of foreign investment can justify the violation of Nigerian laws or the endangerment of local communities.

The committee also expressed concern over the widespread failure of mining companies to meet regulatory benchmarks, including the absence of valid environmental and social impact assessments, community development agreements (CDAs), and environmental protection plans.

The lawmakers said recent site inspections revealed troubling environmental practices and a general disregard for the wellbeing of host communities. Some firms had not fulfilled even the most basic requirements for lawful operation, the chairman noted.

Responding to the committee’s concerns, Vivian Okono, Director of the Mining and Environmental Control Department of the Ministry of Solid Minerals Development (MSMD), acknowledged poor compliance across the sector but noted that reforms were underway.

She said that compliance with environmental and social regulations was “abysmally low” when she assumed office in March 2022, prompting a revision of the 2014 guidelines in November 2023 to enhance enforcement and foster meaningful community engagement.

Okono cited Section 116 of the Nigerian Minerals and Mining Act, which requires companies to submit detailed environmental and social documentation—such as the Environmental Protection and Rehabilitation Programme (EPRP) and annual reclamation statements—prior to commencing operations.

She further explained that Chapter 3 of the revised guideline mandates thorough engagement with host and affected communities, including consultations with local leaders and agreements on development projects ranging from roads to educational infrastructure.

Noting that natural resources must benefit local populations and not become a source of exploitation, Okono said CDAs must function as “living agreements” that genuinely reflect the aspirations of the communities involved.

The House Committee thereafter announced it would begin coordinating with the MSMD to expedite action against non-compliant firms.

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