The Federal Government has reaffirmed its commitment to enforce compliance with the revised Community Development Agreements (CDA) by mining companies, warning that failure to sign these agreements may result in the revocation of mining licenses by the Ministry of Solid Minerals Development.
Dr. Oladele Alake, the Minister for Solid Minerals Development, issued this stern warning during his keynote address at the Businessday Solid Minerals Conference held in Abuja. The theme of the conference was “Digging Deeper: Diversifying Nigeria’s Economy For Wealth Creation.”
Dr. Alake emphasized the importance of the revised requirements for community development agreements in the mining sector, launched by the Ministry in the previous year. The purpose of CDAs is to foster a peaceful environment for mining operations, ensuring a mutually beneficial relationship for communities, the federal government, and mining companies. The Minister expressed disappointment at the low compliance rate, with only 18 companies signing CDAs with their communities in the previous year.
“I wish to note, with dismay, that only 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,” Dr. Alake stated.
Dr. Alake commended the organizers of the Businessday Solid Minerals Conference for their efforts to enlighten the Nigerian press about the structure, needs, and positioning of the sector. He expressed optimism about the practicability of the adopted Seven-Point agenda of the Ministry, approved by the Federal Executive Council, as the administration’s policy to drive changes and reforms in the sector.
The Minister highlighted key objectives, including the establishment of the Nigerian Solid Minerals Corporation, Exploration Data, Security and Safety of Mining, Domestic and International Investment Promotions, Support for Artisanal Co-Operatives, Campaign Against Illegal Mining, Value Addition for Industrial Transformation, Financial Stability, and Community Development Agreements.
In his welcome remarks, Mr. Frank Aigbogun, the Publisher of Businessday, praised the conference’s objectives in bringing together key players, lawyers, and financial bodies to promote the growth and expansion of the solid minerals sector, preparing it for significant inward investment. He expressed confidence in collaborating with the Minister for Solid Minerals and his team to elevate the Solid Minerals Ministry to new heights.
