Dele Alake Secures Commitment: 252 Mining Firms Pledge Infrastructure Support for Nigerian Host Communities

The revelation by the Minister of Solid Minerals Development, Dele Alake, underscores a significant step in fostering responsible and sustainable mining practices in Nigeria. In a recent address at the launch of the revised Community Development Agreement (CDA) in Abuja, Alake disclosed a noteworthy milestone: 252 mining companies have committed to the CDA, aiming to provide essential infrastructure to host communities across the country.

Recognizing the potential impact of mining projects on host communities, Alake emphasized the dual nature of this influence—either positive or negative. The negative consequences often manifest in complaints and resistance, occasionally leading to forceful closure or suspension of mining activities. Alake highlighted the imperative role of the CDA in averting a recurrence of social crises experienced in the Niger Delta by the oil sector, thus safeguarding the ongoing efforts of the Federal Government to diversify the nation’s monolithic economy.

Alake outlined the Ministry’s efforts in monitoring and enforcing compliance with CDA covenants by mining title holders (MTH). Through field monitoring, enlightenment programs, and sensitization exercises, the Ministry has witnessed an increase in compliance. Notably, 252 companies have signed CDAs with their respective host communities, undertaking projects such as boreholes, electricity provision, schools, health centers, road constructions, and scholarships tailored to the identified needs of these communities. Despite these successes, the Minister stressed the Ministry’s commitment to ensuring that all MTHs adhere to CDA provisions, indicating a zero-tolerance approach to non-compliance.

Taking a closer look, the broader vision of the CDA revolves around improving relationships between companies, host communities, governments, civil societies, and other stakeholders. It seeks to foster sustainable and mutually rewarding benefits from mining projects for host communities. Enshrined in the Nigerian Minerals and Mining Act (NMMA) of 2007, Section 116 (1) makes the CDA mandatory between Mineral Title Holders and Mining Communities.

Although the CDA’s concept was initially outlined in 2014, the recent revision became imperative due to identified gaps in the existing guidelines and a surge in complaints and petitions from communities. This proactive approach reflects a commitment to refining and strengthening mechanisms that underpin responsible mining practices in the country.

However, challenges persist, as highlighted by the Nigeria Extractive Industries Transparency Initiative (NEITI), which disclosed that 82 mining companies failed to fulfill mandatory social payments to host communities. NEITI’s Industry report for the Solid Minerals Industry in 2021 revealed that, out of 121 companies, only 39 adhered to the mandatory social payments in accordance with the community development agreement. This discrepancy underscores the need for vigilant oversight and rigorous enforcement of regulations to ensure the accountability of mining companies.

In a stern warning issued in October, Minister Alake emphasized that mining companies breaching community development agreements or failing to comply with necessary regulations risk losing their licenses. This proactive stance signals a commitment to upholding the integrity of the mining industry and underscores the government’s determination to hold companies accountable for their social responsibilities.

In conclusion, the Minister’s disclosure about the growing number of mining companies committed to the Community Development Agreement represents a positive stride toward fostering responsible and sustainable mining practices in Nigeria. As the nation seeks to diversify its economy, ensuring that mining activities contribute positively to host communities is paramount. The ongoing efforts to monitor compliance, revise guidelines, and enforce regulations demonstrate a commitment to achieving this goal and mitigating potential negative impacts associated with mining activities.