Two Chinese Companies Owing Over ₦12bn in VAT — Reps

 The House of Representatives Committee on Finance has summoned two Chinese companies for owing over ₦12 billion in Value Added Tax (VAT), a revelation made during a public hearing on July 11, 2025, in Abuja. 

The companies, identified as China Civil Engineering Construction Corporation (CCECC) and Sinohydro Corporation, have been accused of failing to remit taxes accrued from major infrastructure projects across Nigeria, including the Lagos-Ibadan Railway and several road contracts. Committee Chairman James Faleke described the debt as a significant breach of tax obligations, urging immediate compliance to safeguard public revenue.

The investigation, triggered by a 2024 audit report from the Federal Inland Revenue Service (FIRS), estimates the unpaid VAT at ₦12.3 billion, with interest and penalties pushing the total liability to ₦15 billion. Lawmakers expressed frustration over the companies’ initial refusal to appear, with CCECC citing scheduling conflicts and Sinohydro requesting a delay. 

The committee has threatened sanctions, including contract bans, if the firms do not settle by July 25, 2025. Critics highlight the irony of foreign firms evading taxes while benefiting from Nigerian projects, while the companies’ representatives have promised to engage with FIRS to resolve the matter, though no concrete payment plan has been outlined.