Empowering Mining Communities: The New Community Development Agreements

The federal government is taking steps to improve the relationship between mining companies and the communities they operate in. This move is aimed at ensuring that the welfare of the host communities is given priority. The government has launched the revised ‘Community Development Agreements’ (CDA) to achieve this goal.

During the launch event in Abuja, Dele Alake, the minister of Solid Minerals Development, highlighted the need for mining companies to provide adequate support to the communities where they operate. He emphasized that the companies should contribute to the welfare of the communities in a way that reflects the economic benefits they derive from mining operations.

According to Alake, the CDA requires mining lease holders to engage and conclude agreements with the host communities before commencing any development activities within the lease area. This requirement is in line with the Nigerian Minerals and Mining Act, 2007 and the Regulations, 2011.

The primary purpose of the CDA is to foster healthy and mutually beneficial relationships between mining companies and their host communities. It serves as a mechanism for obtaining social approval for mining activities and for preventing and managing conflicts. Additionally, the CDA aims to ensure that the social and economic benefits of mining projects are transferred to the host communities, and it encourages increased community participation throughout the life of a development project.

Alake also mentioned that 252 companies have already signed CDAs with their host communities, and projects have been initiated based on the identified needs of the communities. However, he acknowledged that there are challenges in the CDA process, including the influence of traditional rulers and chiefs who seek to benefit personally at the expense of the wider community, as well as unrealistic demands from some communities.

Okono Vivian, the director of Mines environmental compliance department, emphasized that the CDA concept has been introduced to promote harmonious and mutually beneficial relationships between mining companies and their host communities. This initiative is aimed at preventing social crises in the solid minerals sector, similar to those experienced in the Niger Delta by the oil sector.

The introduction of the CDA reflects the government’s commitment to diversifying the national economy by focusing on the development of the solid minerals sector. It is a step towards ensuring that the benefits of mining activities are shared with the host communities, and it underscores the importance of responsible and sustainable mining practices.