The federal government has warned mining companies that fail to sign or implement mandatory Community Development Agreements (CDAs) with their host communities that they risk losing their mining licences, as authorities move to tighten enforcement across the solid minerals sector.
Minister of Solid Minerals Development, Dele Alake, issued the warning in Abuja while declaring open the ministry’s two-day ministerial retreat themed: “Accelerating Solid Minerals Sector Transformation: Delivering on Ministerial Mandate Through the Seven Priority Areas.”
Alake disclosed that he had directed the permanent secretary of the ministry to compile a list of mining companies that had failed to comply with the statutory requirement, warning that severe sanctions would soon follow.
“I asked the permanent secretary to provide me with a list of companies that have failed to sign or execute their Community Development Agreements, we are going to take very drastic measures very soon,” the minister said.
He stressed that Community Development Agreements are a legal requirement under Nigeria’s mining laws and are designed to ensure that communities hosting mining operations derive direct social and economic benefits from mineral extraction activities.
The minister’s warning comes as the federal government intensifies reforms aimed at sanitising the mining industry, improving regulatory compliance and ensuring that mining activities contribute meaningfully to local development.
Alake urged officials of the ministry and its agencies to consolidate on the progress already achieved under the ministry’s Seven Priority Areas by developing fresh initiatives capable of accelerating the sector’s transformation.
“I want to charge every one of us to introspect, reflect and come up with initiatives that will take us beyond those seven items in our agenda,” he said.
According to the minister, the ministry has recorded significant progress in investment promotion, mining security, digitalisation, revenue generation, institutional strengthening and regulatory reforms since the implementation of the agenda commenced.
He, however, stressed that future efforts must focus more on measurable outcomes capable of delivering sustainable economic benefits, describing the solid minerals sector as a key pillar of President Bola Tinubu’s economic diversification strategy.
Alake reaffirmed the administration’s commitment to ending the export of raw minerals by promoting local processing and value addition.
As evidence of that commitment, he cited the inauguration of a lithium processing plant in Nasarawa State on Thursday with a daily processing capacity of 6,000 metric tonnes.
According to him, the project demonstrates Nigeria’s determination to leverage its abundant critical mineral resources to drive industrialisation, including the local production of electric vehicle batteries and other high-value products.
The minister also underscored the importance of institutional efficiency in sustaining ongoing reforms and achieving the ministry’s mandate.
He commended staff of the ministry and its agencies for their contributions toward repositioning the sector while urging them to sustain the momentum.
Also speaking, Chairman of the Senate Committee on Solid Minerals, Senator Sampson Ekong, called for increased budgetary support and stronger collaboration among stakeholders to unlock the sector’s enormous economic potential.
Ekong expressed concern over inadequate funding despite the sector’s strategic importance to Nigeria’s economy.
“What we need now is to speed up the process of harvest through meaningful and impactful budget implementation,” he said.
The retreat is expected to review progress made under the ministry’s reform agenda, refine implementation strategies and align ongoing programmes with the priorities of the Tinubu administration.
The ministry’s Seven Priority Areas include establishing the Nigerian Solid Minerals Corporation, attracting strategic joint ventures with reputable international mining companies, developing a National Solid Minerals Database through comprehensive geological data gathering, integrating illegal miners into artisanal mining cooperatives, strengthening mining security through the reconstitution of the Mines Surveillance Task Force and Mine Police, reviewing mining licences, optimising the Mining Cadastre System and establishing six Mineral Processing Centres to promote local value addition.
