Nigeria: Community Guidelines - Nigerian Govt to Revoke Mining Licences

30 January 2024

"Any company that fails to sign their community development agreement stands the risk of having its licences revoked," Mr Alake said.

The Nigerian government said Tuesday it will revoke the licences of mining companies over failure to sign Community Development Agreements (CDA).

The Minister of Solid Minerals Development, Dele Alake, disclosed this while speaking at the BusinessDay Media Solid Minerals Conference, held in Abuja.

"This year I am using this opportunity to sound a note of warning. Any company that fails to sign their community development agreement stands the risk of having its licences revoked," Mr Alake said.

The Ministry of Solid Minerals Development had in November 2023 launched revised guidelines for the production of the Community Development Agreement.

According to the ministry, the CDA is a statutory provision that ensures the transfer of socio-economic benefits to mining host communities. It is a legal document that contains obligations by the Mineral Title Holder (MTH) to host communities and vice versa.

Speaking on Tuesday, Mr Alake said only 18 companies signed CDAs with their communities last year.

"Last year, I launched the revised requirements for community development agreements. It was the appropriate forum to appeal to holders of mining licenses to ensure that they negotiate with the communities in their mining areas and sign the agreements which ensure that the communities benefit from the wealth created from their commonwealth.

"I wish to note, with dismay, that only eighteen (18) companies signed CDAs with their communities last year. We hope to enforce the implementation of the revised guidelines in the new year and those found wanting will face stiff penalties," he added.

Licences

The minister said in 2023, the ministry granted no fewer than 499 licences to applicants involved in the business of purchase and sales of minerals.

"Last year, no fewer than 499 licenses were granted to applicants involved in the business of purchase and sales of minerals," he said.

Predictably, he said applications for the purchase and sale of lithium topped the list with 146 licences, followed by gold 91, tin 46 and coal, 32.

"Other minerals for which licences were granted include Tantalite, Iron Ore, Kaolin, Feldspar, Beryl, baryte, Columbite, Mica and Aquamarine," he added.

He explained that the ministry has continued to facilitate the processing of applications for permits to refine minerals and to process and purchase.

"Without a modicum of doubt, Nigeria is very rich in minerals. If this was the only requirement for foreign direct investment, we would sit arms akimbo and wait for the investors to come. It is not. We are competing with other countries across the continents for investors," he said.

The minister said the struggle to attract foreign investors starts with the creation of a supportive investment climate in the country by adopting international best practices which translate to the ease of doing business.

In this regard, he said various assets have been mobilised to encourage investment.

"Efforts are also being made to improve the Nigerian Mining and Minerals Act 2007 to accommodate the changes over the years and make it more amenable to national priorities," he said.

Artisanal miners

Mr Alake further explained that the campaign against illegal mining and call on artisanal miners to form co-operatives and get government recognition, support and a legal basis to mine is yielding fruits.

"To date, there are 2,329 registered artisanal miners co-operatives in the country. In 2023, 123 co-operatives were registered. It is significant that 77 of 123 opted for registration following my appeal to them to join hands with the federal government," he said.

He noted that the ministry provides extension services to these co-operatives by improving their bookkeeping skills and drilling techniques.

"I wish to further urge artisanal miners to come together and register as co-operatives. To ease the operations of this sub-sector, the ministry has licensed 986 buying centres across the 36 states of the federation.

"Plateau, for obvious reasons of its long mining history, has 315 centres followed by Federal Capital Territory, 224 and Lagos, 108," he said.

AllAfrica publishes around 500 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.