The Federal Government has directed mining and quarrying companies issued licences since 2024 to finalise Community Development Agreements (CDAs) with host communities on or before Dec. 31, 2025.
The Minister of Solid Minerals Development, Dr. Dele Alake, issued the directive in Abuja on Thursday, following a performance review of companies’ compliance with CDA obligations, as presented by the Mines Environmental Compliance (MEC) Department.
Alake warned that defaulting firms risk sanctions, including licence revocation and reparations for minerals already extracted without agreements.
The review showed that while the Mining Cadastre Office (MCO) issued 74 new mineral titles in the first half of 2025, only 24 CDAs were signed. By contrast, 1,388 mineral titles were issued in 2023 and 954 in 2024, but only 342 CDAs have been executed to date.
“The wide gap between titles issued and signed CDAs is alarming,” Alake said. “We will not allow companies to mine without first sitting with host communities to agree on projects and programmes that address their needs. Refusal to do so is criminal expropriation and an unpardonable injustice.”
The minister stressed that the administration was committed to enforcing international Environmental, Social, and Governance (ESG) standards, and cited the revocation of licences of firms that defaulted on annual service fees as precedent.
He also urged host communities to assemble credible negotiation teams, including retired professionals, to secure projects that benefit youths, women, and the wider community.
Alake cautioned traditional rulers and community leaders against compromising CDA talks for personal gains or recommending contractors who deliver substandard projects.
He commended MEC Director Dr. Vivian Okono for shutting down three companies — Istanbul, Venus, and Cornerstone — in August for delaying CDA negotiations with their host communities.
“That should be a clear signal to others that it is no longer business as usual,” the minister said.
