So, here’s the scoop – 252 mining companies in Nigeria have agreed to step up and provide basic infrastructures to the communities they operate in. This was revealed by the Minister of Solid Minerals Development, Dele Alake, during the launch of the revised Community Development Agreement (CDA) in Abuja. Alake pointed out that mining projects can have both positive and negative impacts on host communities. He stressed the importance of preventing negative effects that could lead to social crises, similar to what the oil sector faced in the Niger/Delta region. The goal is to diversify the economy and avoid repeating past mistakes.
The Minister highlighted the progress made in implementing the CDA covenants, with 252 companies already signing agreements with their host communities. These agreements cover various projects such as boreholes, electricity, schools, health centers, road constructions, and scholarships, based on the specific needs of the communities. However, there are still some companies that have not complied with the Act, and the Ministry is determined to enforce compliance.
The main objectives of the Community Development Agreement are to strengthen relationships between companies, host communities, governments, civil societies, and other stakeholders, as well as to ensure sustainable and mutually beneficial benefits from mining projects for the communities. This agreement is a mandatory requirement under the Nigerian Minerals and Mining Act (NMMA), 2007.
The Ministry first developed guidelines for the CDA in 2014, but a revision was necessary due to identified gaps and numerous complaints from the communities. The Nigeria Extractive Industries Transparency Initiative (NEITI) reported that 82 mining companies failed to make mandatory social payments to host communities, which is a cause for concern. In fact, out of 121 companies, only 39 complied with the community development agreement.
In response to this, Alake issued a warning in October, stating that mining companies that breach community development agreements or fail to comply with regulations may risk losing their licenses.