The Federal Government has reiterated its commitment to enforcing compliance with the newly revised Community Development Agreements (CDA) by mining companies, warning that failure to adhere to these agreements could result in the revocation of mining licenses by the Ministry of Solid Minerals Development.
The Minister for Solid Minerals Development, Dr. Oladele Alake delivered this warning during his keynote address at the Business Day Solid Minerals Conference held in Abuja. Under the theme “Digging Deeper: Diversifying Nigeria’s Economy for Wealth Creation,” the minister emphasised the significance of community development agreements in creating a conducive environment for mining operations.
“Any company that fails to sign the community development agreements stands the risk of having its license revoked,” stated Alake.
Highlighting the importance of the revised requirements for community development agreements, launched by the Ministry in 2023, Alake explained that CDAs aim to foster a peaceful environment for mining operations, establishing a mutually beneficial relationship among communities, the Federal Government and mining companies. Expressing disappointment at the low level of compliance by mining companies, he announced plans to enforce the implementation of the revised guidelines in the new year, with stringent penalties for non-compliance.
“I wish to note, with dismay, that only 18 companies signed CDAs with their communities last year. We hope to enforce the implementation of the revised guidelines in the new year and those found wanting will face stiff penalties,” declared Alake.
Commending the Business Day Solid Minerals Conference for its role in enlightening the Nigerian press about the sector’s structure, needs and positioning, the Minister emphasised the importance of sensitisation to garner media support for the ministry’s efforts.
Alake expressed optimism in the practicability of the seven-point agenda adopted by the ministry, citing its endorsement by the Federal Executive Council as the administration’s policy. He identified key objectives, including the establishment of the Nigerian Solid Minerals Corporation, exploration data security and safety of mining, domestic and international investment promotions, support for artisanal co-operatives, campaign against illegal mining, value addition for industrial transformation, financial stability and community development agreements.
In his welcome remarks, the publisher of Business Day, Mr. Frank Aigbogun applauded the initiative behind the conference. Describing it as a congregation of actual players in the sector, lawyers and financial bodies, Aigbogun emphasised the goal of preparing the solid minerals sector for significant inward investment, with the collaboration of the Minister for Solid Minerals and his team.
“We believe that together, with the Minister for Solid Minerals and his team, we can move the Solid Minerals Ministry to a level even beyond that we now imagine for the ministry of Petroleum,” said Aigbogun, underscoring the transformative potential of the sector.
