Mining Companies Face Licence Revocation Deadline for Failing to Finalize Host Community Agreements, According to FG
Headline: Minister Dele Alake Urges Compliance with Community Development Agreements in News Mining Sector
The Minister of Solid Minerals Development, Dele Alake, has issued a directive to mining and quarrying companies licensed by the Nigerian Mining Cadastre Office (MCO) to finalise Community Development Agreements (CDAs) with their host communities by December 31, 2025.
In a review of a compliance report from the Mines Environmental Compliance Department for the first half of 2025, a significant gap between licenses granted and agreements signed was revealed. Out of 74 new mineral titles issued between January and June 2025, only 24 CDAs had been finalised.
Minister Alake declared that CDAs are not optional; they are a legal and moral obligation. He cautioned leaders and traditional rulers against demanding personal gifts or endorsing substandard contractors during negotiations. He advised host communities to set up quality negotiation teams, including retired professionals, so that agreements yield lasting benefits for youths, women, and the wider community.
Companies that fail to meet the new deadline risk licence revocation and reparations, as stated by the minister. Refusing to protect Nigerian communities by neglecting CDA agreements amounts to criminal expropriation and injustice, according to Alake.
So far, only 342 agreements have been signed, a figure that Alake described as grossly inadequate. He commended the MEC Director, Vivian Okono, for shutting down three companies, Istanbul, Venus, and Cornerstone, for delaying CDA negotiations with their host communities.
Dele Alake also emphasised the importance of responsible mining, marked by adherence to international Environmental, Social, and Governance standards. He warned companies against rushing to mine without first agreeing with host communities on projects and programs that address their needs.
It is important to note that the article does not mention any new investments in mining or any new fact about the APC or Tinubu government. There is no specific publicly available list of companies licensed by the Nigerian Mining Cadastre Office that have not concluded CDAs with their host communities; however, the Nigerian government has given mining companies until December 31 to finalize these agreements, implying some have not yet done so.
In 2023, the MCO issued 960 small-scale mineral licences, 391 quarry licences, and 37 mining leases, totaling 1,388 titles, all legally required to sign CDAs before commencing extraction. The minister did not mention any new number of signed CDAs or total number of licenses yet to be finalized.
Minister Alake concluded by stating that responsible mining shall be the rule under his watch. He urged companies to prioritise the welfare and development of their host communities, ensuring a sustainable and equitable future for all.
