The Federal Government has directed mining and quarrying companies operating in Nigeria to conclude Community Development Agreements (CDAs) with their host communities on or before December 31, 2025.
The directive was issued by the Minister of Solid Minerals Development, Dr. Dele Alake, following a review of compliance reports by the Mines Environmental Compliance (MEC) department of the ministry.
According to the report, while 74 new mineral titles were granted in the first half of 2025, only 24 CDAs were signed within the same period. In contrast, the Nigerian Mining Cadastral Office (MCO) had issued a total of 1,388 licences in 2023, including 960 small-scale mining licences, 391 quarry licences, and 37 mining leases, all of which were expected to be backed by CDAs before extraction activities commenced.
Alake expressed concern over the gap between the thousands of titles issued and the only 342 CDAs signed so far, stressing that compliance is mandatory under Nigerian law.
“Under our watch, responsible mining, marked by compliance with international Environmental, Social and Governance standards, shall be the rule. We will not allow a situation where companies rush to mine without first engaging host communities,” he said.
The minister warned that companies failing to meet the December deadline risk having their licences revoked and may be compelled to pay reparations for minerals already extracted without agreements.
Alake also urged host communities to field credible representatives, such as retired professionals, during CDA negotiations to secure sustainable projects that would benefit youths, women, and the community at large. He further cautioned traditional rulers and community leaders against undermining negotiations by seeking personal benefits or endorsing substandard contractors.
He commended the Mines Environmental Compliance department for shutting down three companies—Istanbul, Venus, and Cornerstone—for delaying CDA negotiations, noting that the action should serve as a warning to others.
“This should be a clear signal that it is no longer business as usual,” Alake stated.