The Federal Government has directed all mining and quarrying companies licensed by the Nigerian Mining Cadastral Office (MCO) to conclude Community Development Agreements (CDAs) with their host communities on or before December 31, 2025.
Naija News reports that the Minister of Solid Minerals Development, Dele Alake, issued the directive after reviewing a compliance report from the Mines Environmental Compliance Department for the first half of the year.
The report revealed a huge gap between licences granted and agreements signed. While 74 new mineral titles were issued between January and June 2025, only 24 CDAs were finalised.
Similarly, in 2023, the MCO issued 960 small-scale mineral licences, 391 quarry licences and 37 mining leases, totalling 1,388 titles, all legally required to sign CDAs before commencing extraction.
So far, however, only 342 agreements have been signed, a figure Alake described as grossly inadequate.
The minister warned that companies would face licence revocation and reparations if they failed to meet the new deadline.
“Responsible mining, marked by adherence to international Environmental, Social and Governance standards, shall be the rule under our watch,” Alake declared.
“Companies must not rush to mine without first agreeing with host communities on projects and programmes that address their needs. Refusing to protect Nigerian communities by neglecting CDA agreements amounts to criminal expropriation and injustice.”
Alake further 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.
He cautioned leaders and traditional rulers against demanding personal gifts or endorsing substandard contractors during negotiations.
The minister also commended the MEC Director, Vivian Okono, for shutting down three companies, Istanbul, Venus and Cornerstone, last month, for delaying CDA negotiations with their host communities.
“Our message is clear: community development agreements are not optional; they are a legal and moral obligation,” Alake stressed.
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