FG Threatens To Revoke Mining Licences Over Community Agreement Violations

The Federal Government has warned mining companies that fail to comply with statutory Community Development Agreements (CDAs) that they risk losing their mining titles as authorities intensify efforts to enforce compliance across the solid minerals sector.

Minister of Solid Minerals Development, Dele Alake, issued the warning on Friday at the opening of the ministry's two-day ministerial retreat in Abuja, where stakeholders reviewed progress under the government's reform agenda for the mining industry.

Speaking on the theme, "Accelerating Solid Minerals Sector Transformation: Delivering on Ministerial Mandate Through the Seven Priority Areas," Alake said he had directed the ministry's Permanent Secretary to compile a list of companies that had either failed to sign Community Development Agreements with their host communities or had neglected to implement them.

According to the minister, the list has already been submitted, and the government is preparing to impose severe sanctions on affected operators.

"I asked the Permanent Secretary to provide me with a list of companies that have failed to sign or execute their Community Development Agreements.

"He has done so, and we are going to take very drastic measures very soon," Alake said.

He stressed that Community Development Agreements are not optional but a legal requirement designed to ensure that communities hosting mining activities benefit directly from the exploitation of mineral resources within their areas.

Alake urged officials of the ministry and its agencies to build on the gains already recorded under the ministry's seven-point reform agenda by developing fresh initiatives capable of driving greater growth and sustainability in the sector.

"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.

The minister said the ministry had recorded measurable progress in investment promotion, mining security, digitisation, institutional reforms and revenue generation but noted that greater emphasis should now be placed on achieving measurable economic outcomes.

He reiterated that the solid minerals sector has become a critical pillar of President Bola Tinubu's economic diversification strategy and reaffirmed the government's commitment to ending the export of raw mineral resources in favour of domestic processing and value addition.

Alake cited the recent inauguration of a 6,000-metric-tonne-per-day lithium processing plant in Nasarawa State as evidence of the government's determination to develop local mineral processing capacity.

He said Nigeria intends to leverage its vast deposits of critical minerals to stimulate industrialisation, including the local production of electric vehicle batteries and other high-value manufactured products.

Also speaking at the retreat, Chairman of the Senate Committee on Solid Minerals, Senator Sampson Ekong, called for increased budgetary allocations and stronger collaboration among stakeholders to unlock the full potential of Nigeria's mining industry.

While acknowledging the reforms being implemented by the ministry, Ekong expressed concern over inadequate funding, warning that poor budget releases could slow the pace of implementation.

"What we need now is to speed up the process of harvest through meaningful and impactful budget implementation," he said.

The ministerial retreat is expected to review implementation strategies under the ministry's seven priority areas, which include the establishment of the Nigerian Solid Minerals Corporation, strategic partnerships with global mining companies, improved mining security, digitisation of the mining cadastre system, integration of artisanal miners into formal cooperatives, comprehensive mining licence reforms and the establishment of six mineral processing centres to boost local value addition.