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 by 31 December 2025. The order was issued by the Minister of Solid Minerals Development, Dele Alake, following a review of CDA compliance in the first half of 2025.
Findings from a Mines Environmental Compliance (MEC) report revealed a wide gap between the number of mining titles granted and the agreements signed with communities. Between January and June 2025, 74 new mineral titles were issued, but only 24 CDAs were finalized. The pattern is not new. In 2023, the MCO granted 1,388 titles, including 960 small-scale licences, 391 quarry licences, and 37 mining leases. Despite the legal requirement that companies must sign CDAs before starting extraction, only 342 agreements have been executed to date.
This lack of compliance raises serious concerns about how communities are being integrated into Nigeria’s expanding mining sector. Community Development Agreements are designed to ensure that residents, especially those directly affected by mining operations, share in the benefits of resource extraction. These agreements typically cover commitments by companies to provide infrastructure, jobs, social services, and other community benefits in exchange for the right to exploit local resources. Without them, host communities often bear the environmental and social costs of mining without seeing meaningful returns.
Alake underscored the urgency of addressing this compliance gap, noting that mining cannot be allowed to proceed at the expense of communities. He advised host communities to form strong, well-structured negotiation teams to represent their interests in discussions with mining firms. According to him, such teams should include retired professionals and other experienced individuals who can guide negotiations and help secure long-term, tangible benefits for local populations. The minister emphasized that youth and women, in particular, should be prioritized in the distribution of opportunities and resources derived from mining agreements.
The directive signals a stronger push by the Federal Government to enforce existing laws and hold companies accountable. It also reflects wider concerns about ensuring that Nigeria’s solid minerals sector contributes to inclusive development, rather than deepening inequality. If fully implemented, compulsory CDAs could provide a framework for sustainable engagement between mining companies and communities, reducing tensions, building trust, and promoting local development.
By setting a clear deadline for compliance, the government is sending a message that the era of companies evading their obligations is coming to an end. For communities across Nigeria’s mineral-rich regions, the directive offers a renewed opportunity to claim their stake in the country’s resource wealth. Ultimately, whether this initiative succeeds will depend on consistent enforcement and the ability of communities to organize effectively and negotiate from a position of strength
