Minister warns mining firms about community agreements

The Minister of Solid Minerals Development, Dele Alake, has warned mining companies in Nigeria. He said that not following their Community Development Agreements (CDAs) could lead to penalties, including losing their licences.

Mr Alake gave this warning on Saturday during the ministry’s 2026 Ministerial Retreat in Abuja.

He mentioned that the government has made good progress in improving the solid minerals sector. Now, there will be more focus on accountability and ensuring that host communities gain from mining activities.

“Our reforms have restored confidence, attracted serious investors and made the sector a key part of Nigeria’s economic diversification. Now, our focus is on accountability,” he said.

The minister emphasized that companies must keep their promises made to host communities.

“Mining companies that fail to honour their Community Development Agreements will face sanctions, including the revocation of their licences,” he stated.

He added that, “Host communities deserve to benefit from the resources in their land, and there will be consequences for those who ignore that responsibility.”

Community Development Agreements are legal contracts between mining firms and host communities. They spell out commitments for social amenities, jobs, infrastructure, and other projects that help development.

Mr Alake also confirmed the Federal Government’s commitment to fighting illegal mining in the country.

He said that the ministry will improve the work of the Mining Marshals and will use practical and innovative ideas to boost security in the sector.

“I also reaffirmed our commitment to ending illegal mining by strengthening the Mining Marshals and embracing practical, innovative ideas that will make the sector more secure and more beneficial to all Nigerians,” he said.

The minister added that the government’s ongoing reforms aim to create a more honest, secure, and investment-friendly mining sector. This sector should contribute more to Nigeria’s economic growth.