Nigeria’s Mining Sector Faces Ultimatum: Seal Community Deals by Year-End or Lose Licenses
In a firm push to safeguard host communities and curb exploitation in Nigeria’s booming mining industry, the Federal Government has issued a strict directive to all mining and quarrying companies licensed by the Nigerian Mining Cadastral Office (MCO). They must finalize Community Development Agreements (CDAs) with their host communities by December 31, 2025, or face immediate license revocation and potential reparations for past extractions. The announcement, made on September 18, 2025, underscores the administration’s zero-tolerance stance on non-compliance, aiming to ensure equitable benefits from the nation’s vast mineral wealth.
Minister of Solid Minerals Development, Dr. Dele Alake, delivered the order after scrutinizing a mid-year compliance report from the Mines Environmental Compliance (MEC) Department. The findings were stark: Out of 74 new mineral titles granted between January and June 2025, only 24 CDAs had been executed. “Refusal to protect the Nigerian people by agreeing with them on what the communities will gain from the mineral exploitation of their land is criminal expropriation and an unpardonable injustice,” Alake declared, emphasizing that this isn’t optional—it’s a legal imperative under the Nigerian Minerals and Mining Act.
CDAs, mandated since the 2007 Mining Act, require companies to outline tangible benefits like infrastructure, healthcare, education, and environmental safeguards for communities impacted by operations. Alake urged host communities to assemble robust negotiation teams, including retired professionals, to secure lasting gains for youth, women, and the broader populace. He also warned traditional rulers against accepting personal inducements or approving shoddy contractors, stressing transparency to avoid future disputes.
Recent Crackdowns Signal Serious Enforcement
The directive builds on recent actions that demonstrate the government’s resolve. In August 2025, the MEC, under Director Dr. Vivian Okono, shut down three non-compliant firms—Istanbul, Venus, and Cornerstone—for stalling CDA talks. Alake praised Okono’s team, calling it a “clear signal that it is no longer business as usual.” This follows earlier revocations for unpaid annual service fees, with the ministry revoking titles from defaulters to recover dues and deter negligence.
The policy targets companies licensed since 2024, giving them about three months to comply. For older operators, Alake reiterated that CDAs must be renewed every five years, with non-renewal halting operations. This comes amid a surge in mining activities, as Nigeria eyes $10 billion in annual revenue from solid minerals to diversify beyond oil. However, past failures have fueled conflicts, including protests and violence in states like Zamfara and Plateau, where communities decry environmental degradation without compensation.
Implications for Industry and Communities
For mining firms, the deadline ramps up pressure in an already challenging sector plagued by insecurity, regulatory hurdles, and global commodity fluctuations. Compliance could enhance social licenses to operate, attract foreign investment, and mitigate risks like lawsuits or shutdowns. Industry watchers predict a flurry of negotiations in the coming weeks, potentially boosting local economies if done right.
Communities stand to gain the most, with CDAs promising direct investments in development projects. Alake’s call for empowered bargaining aims to prevent the “resource curse” seen in other African nations, where extraction enriches outsiders while locals suffer. Yet, enforcement remains key; weak oversight has historically undermined similar mandates.
This move aligns with President Bola Tinubu’s broader reforms to make mining a pillar of economic growth. As the December 31 cutoff looms, the onus is on stakeholders to prioritize dialogue over delay. Failure isn’t an option—it’s a pathway to lost opportunities for all.