From Extraction To Inclusion: Rethinking Community Development Obligations in Nigeria’s Mining Industry.
INTRODUCTION:
For decades, the tension between resource-rich host communities and mining operators has been marked by exploitation, neglect, and environmental degradation. At the centre of this tension lies the failure of mining companies to meaningfully provide social and economic benefits in exchange for mineral extraction to the host communities.
It is in this context that Dr. Dele Alake, the Honorable Minister of Solid Minerals, has set a deadline of 31st December, 2025, for all mining, quarrying, and lease firms to comply with the mandatory Community Development Agreement (CDA) requirement under the Minerals and Mining Act, 2007 and the Nigerian Minerals and Mining Regulations, 2011. This signals a new era of strict enforcement and accountability in the solid mineral sector.
The CDA: Legal Framework and Intent.
This CDA is not merely a voluntary gesture of corporate social responsibility; it is a statutory obligation that is provided for under Section 116 of the Nigerian Minerals and Mining Act, 2007.
The formulation of the CDA under the Mining Act was intended to institutionalize corporate social responsibility. Section 116 of the Nigerian Minerals and Mining Act, 2007 that:
116 – (1) Subject to the provisions of this section, the Holder of a Mining Lease, SmaIl Scale Mining Lease or Quarry Lease shall prior to the commencement of any development activity within the lease area, conclude with the host community where the operations are to be conducted an agreement referred to as a Community Development Agreement or other such agreement that will ensure the transfer of social and economic benefits to the community.
This provision transforms CDA from a voluntary Corporate Social Responsibility into a legal obligation where Mining entities are compelled by law to allocate resources and execute community projects, ensuring that the wealth generated from natural resources benefits the local population.
Additionally, the CDA which is subject to review every 5 years, promotes participatory governance, as communities are directly involved in identifying their needs and in the planning, implementation, and monitoring of legacy projects and programmes, such as: construction of roads, schools, health centres, and boreholes, scholarship scheme for local students, employment quotas for indigenes, vocational training for youths, restoration of degraded mining sites, agricultural support, women empowerment program, etc.
Therefore, the mandatory mutual agreements between the company and the community reduces conflicts and grievances often arising from environmental degradation, displacement, or lack of benefits, amongst many others.
Enforcing the CDA: Federal Government of Nigeria’s Strategy
The need for the enforcement of the CDA is largely grounded in the above-referenced provisions of the Nigerian Minerals and Mining Act, 2007, and the Minerals and Mining Regulations, 2011.
One of the major enforcement strategies is through the Ministerial approval and oversight. That is, before a mining company begins operations, its CDA must be negotiated and signed with the Host Community, submitted to the Ministry through the Mining Cadastre Office, and approved by the Honourable Minister of Solid Minerals Development.
Consequently, it is safe to surmise that the Minister’s approval is a precondition and an enforcement checkpoint, i.e., no CDA approval, no mining activity for such mining company.
The other means of enforcement are through:
- Monitoring, Compliance Audits, and Reporting Mechanisms.
- Recent Enforcement Drive- Ministerial Directive of 2025.
- Penalties and Remedial actions, etc.
The Legal Effect
By these provisions of the law, a mining leaseholder must enter into a Community Development Agreement with the host community before commencing development or extraction operations. No lawful mining activity can begin until the CDA is executed and approved by the Minister of Solid Minerals.
Failure to comply renders illegal any mining operation by a non-complying mining company and could lead to revocation of licence among other sanctions under the Act.
Also, the CDA serves as a social contract between the mining company and the community as it mandates its execution before operations towards ensuring that host communities are guaranteed tangible benefits and have a voice in how projects are implemented.
Conclusion
The Community Development Agreement (CDA) represents one of the most progressive innovations in Nigeria’s mineral resource governance architecture. By embedding social responsibility into the very foundation of mining operations, the Federal Government is working to ensure that mineral wealth translates into tangible development for host communities.
However, persistent non-compliance, weak enforcement in earlier years, and fragmented monitoring mechanisms have historically undermined the intent of the CDA requirement. The recent statement by the Honourable Minister of Solid Mineral Development, mandating full compliance as a precondition for operational legitimacy, signals a decisive policy shift from passive regulation to active accountability, and the success of the CDA regime will depend on sustained political will, institutional vigilance, and genuine community engagement.