By Ayobamiji Komolafe,Success Nwogu
Copyright newtelegraphng
The Federal Government has directed all mining and quarrying companies licensed by the Nigerian Mining Cadastral Office (MCO) to finalize Community Development Agreements (CDAs) with their host communities on or before December 31, 2025.
Minister of Solid Minerals Development, Dr. Dele Alake, announced the deadline following a review of the performance of mining companies in the first half of the year, based on a report from the Ministry’s Mines Environmental Compliance (MEC) department.
The report revealed that while 74 new mineral titles were issued in the first six months of 2025, only 24 CDAs were signed.
Alake highlighted the stark gap between the thousands of mineral titles issued and the mere 342 CDAs signed so far, stressing the urgency for compliance. “Responsible mining, marked by adherence to international Environmental, Social, and Governance (ESG) standards, shall be the rule. Companies must not rush into mining without first engaging with host communities to agree on projects and programs that address their needs,” he said.
The Minister warned that companies failing to comply with the directive will face severe sanctions, including the revocation of their licenses and demands for reparations for minerals extracted. He cited last month’s shutdown of three companies, Istanbul, Venus, and Cornerstone for delaying CDA negotiations as a signal to other operators that “it is no longer business as usual.”
Alake also urged communities to establish quality negotiation teams composed of retired professionals to secure meaningful and sustainable legacy projects, while advising traditional rulers and community leaders against personalizing negotiations or endorsing substandard contractors.
The directive covers the 1,388 mineral titles issued in 2023, including 960 small-scale mining licenses, 391 quarry licenses, and 37 mining leases, as well as the 954 titles issued in 2024, comprising 728 small-scale mining licenses, 198 quarry licenses, and 28 mining leases.
He emphasized that failure to conclude CDAs by the deadline will be treated as criminal expropriation and a violation of community rights.