Addressing the Welfare of Mining Host Communities: FG Launches Community Development Agreement
The federal government has taken a proactive approach to addressing the welfare of host communities by launching the revised ‘Community Development Agreements’ (CDA) which aims to strengthen the relationship between these communities and mining companies. The goal is to ensure that these communities receive appropriate support and benefits from the mining operations taking place within their vicinity.
Dele Alake, the Minister of Solid Minerals Development, emphasized the need for mining companies to provide substantial support to host communities during the launch of the CDA in Abuja. He highlighted the disparity between the benefits accruing to the mining companies and the level of support provided to the communities. According to Alake, the CDA is designed to compel mining operators to fulfill their obligations to these communities by enhancing their quality of life through various means such as educational support, infrastructure development, and community relations programs.
The CDA dictates that holders of mining leases must engage and finalize agreements with the host communities before commencing any development activities within the lease area. This requirement is in accordance with Section 116 of the Nigerian Minerals and Mining Act, 2007 and Section 193 of the Regulations, 2011, with the aim of promoting healthy and mutually beneficial relationships between mining companies and their host communities.
Furthermore, Alake also pointed out that the CDA serves as a mechanism for promoting social license to mine and preventing and managing conflicts. The goal is to ensure that social and economic benefits derived from mining projects are transferred to the host communities, and that community participation is increased throughout the life of a development project.
At present, 252 companies have signed CDAs with their host communities, providing projects that are aligned with the identified needs of these communities. However, the minister acknowledged that there are challenges hindering the CDA processes in some communities, including the excessive influence of traditional rulers and chiefs in directing benefits meant for the entire community to a select few individuals, as well as unrealistic demands from some communities that are unachievable for the companies.
Okono Vivian, the Director of Mines Environmental Compliance Department of the Ministry, also reiterated the importance of the CDA in promoting harmonious and mutually beneficial relationships between mining companies and their host communities. She emphasized that the inclusion of the CDA in the Nigerian Minerals and Mining Act (NMMA), 2007 is aimed at preventing social crises similar to those experienced in the Niger Delta by the oil sector, which could undermine the government’s efforts to diversify the national economy through the development of the solid minerals sector.
In conclusion, the launch of the Community Development Agreement by the federal government underscores its commitment to addressing the welfare and development of mining host communities. Through the implementation of these agreements, the government aims to ensure that mining companies fulfill their social and economic obligations to these communities, fostering a more mutually beneficial relationship between all parties involved.
