Stricter Enforcement of Development Agreements for Mining Companies, Says Minister of Solid Minerals Development
The Honourable Minister for Solid Minerals Development, Dr. Dele Alake, has issued a serious warning to mining companies, stating that they will face sanctions if they fail to adhere to the revised Community Development Agreements (CDA).
Dr. Alake conveyed this message through his Special Assistant on Media, Mr. Segun Tomori, in the capital city of Abuja. The Ministry of Solid Minerals Development unveiled the revised guidelines for the creation of these agreements on November 16, 2023. The CDA is a crucial legal provision that ensures the transfer of socio-economic benefits to mining host communities. It is a legally binding document that outlines the obligations of the Mineral Title Holder (MTH) to the host community and vice versa.
The minister stressed that the era of disregarding the CDA is over, and measures have been put in place to enforce compliance and sanction those who fail to do so. Additionally, the Nigerian Solid Minerals Corporation is in the process of being established, and steps are being taken to create a legislative framework to guide its operations. Dr. Alake also disclosed that the government aims to ensure a share structure in which the Federal Government will not hold more than 25 per cent, and Nigerian citizens will hold 25 per cent through public shares, with private investors having a maximum of 10 per cent of the shares of the N1 billion share capital.
In addition, the government is exploring funding options for an integrated minerals exploration project that seeks to comprehensively cover all categories of minerals across Nigeria, including coastal offshores and deep sea mining opportunities. President Bola Tinubu has demonstrated his commitment to addressing insecurity around mining sites and other natural resources by establishing an inter-ministerial committee to produce a blueprint for securing Nigeria’s natural resources. The committee recently held an expanded meeting with security agencies to develop a comprehensive security architecture for mineral sites, the marine economy, and forests.
Moreover, the government is dedicated to creating a conducive business environment in the sector by digitising the mining application process through the Electronic Mining Cadastral System. Efforts are also underway to enhance the Nigerian Mining and Minerals Act 2007 to accommodate changes over the years and align it with national priorities.
These developments highlight the government’s commitment to enforcing compliance with development agreements in the mining sector and ensuring the sustainable and responsible extraction of Nigeria’s mineral resources for the benefit of the communities and the nation as a whole.
