The Minister of Solid Minerals Development, Dr. Dele Alake, has issued a stern warning to mining and quarrying companies operating in the country: sign Community Development Agreements (CDAs) with host communities by December 31, 2025, or face the revocation of licenses.
This directive comes in response to a joint review by the Mining Cadastre Office (MCO) and the Mines Environmental Compliance (MEC) department, which found widespread non-compliance among mineral title holders with the CDA requirement—a legal obligation before any mineral extraction can commence.
“Responsible mining, marked by compliance with international Environmental, Social, and Governance (ESG) standards, shall be the rule under our watch,” said Dr. Alake in a statement issued by his media aide, Segun Tomori.
The report revealed that only 24 out of 74 new mineral titles issued in the first half of 2025 had signed CDAs. In 2023 alone, the MCO issued 960 Small-Scale Mining License, 391 Quarry Licenses and 37 Mining Leases.
Yet, only 342 CDAs have been signed to date—a figure Alake described as “deeply troubling.”
“Refusal to protect the Nigerian people by agreeing with them on what the communities will gain from the mineral exploitation of their land is criminal expropriation and an unpardonable injustice,” he stated.
Alake emphasized that companies failing to comply will not only have their mining licenses revoked, but will also be liable to pay reparations for any minerals extracted without a signed agreement.
He cited recent enforcement actions by the Mines Environmental Compliance team, which shut down three firms—Istanbul, Venus, and Cornerstone—in August for stalling CDA negotiations.
“This development should be a strong signal to others: it’s no longer business as usual,” Alake warned.
The Minister urged host communities to form negotiation teams comprising retired professionals who can secure sustainable, long-term benefits through CDA deals, including projects targeting youth empowerment, women’s development, and infrastructure improvement.
He also called on traditional rulers and community leaders to resist the temptation of personal gains at the expense of their people, warning against endorsing substandard contractors or demanding personal gifts during negotiations.
Alake reiterated the government’s commitment to sanitizing the Nigerian mining sector and unlocking its estimated $700 billion potential by enforcing regulations, promoting responsible practices, and ensuring host communities benefit equitably.
