Nigeria warns mining firms over community pacts, threatens license revocation

Nigeria's Minister of Solid Minerals Development, Dele Alake, has issued a stern warning to mining companies, threatening license revocation for those failing to comply with their Community Development Agreements (CDAs). Speaking at the ministry's 2026 Ministerial Retreat in Abuja, Alake emphasized a new focus on accountability within the sector.

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Our reforms have restored confidence, attracted serious investors and made the sector a key part of Nigeria’s economic diversification. Now, our focus is on accountability.

"Our reforms have restored confidence, attracted serious investors and made the sector a key part of Nigeria’s economic diversification. Now, our focus is on accountability," Alake stated. He stressed that companies must honor the agreements made with their host communities, asserting, "Mining companies that fail to honor their Community Development Agreements will face sanctions, including the revocation of their licences." He further added, "Host communities deserve to benefit from the resources in their land, and there will be consequences for those who ignore that responsibility."

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Mining companies that fail to honor their Community Development Agreements will face sanctions, including the revocation of their licences.

CDAs are legally mandated arrangements that outline commitments for social amenities, employment, and infrastructure development between mining firms and the communities where they operate. The minister also reaffirmed the government's commitment to tackling illegal mining. To achieve this, the ministry plans to strengthen the operations of the Mining Marshals and implement practical, innovative security measures. "I also reaffirmed our commitment to ending illegal mining by strengthening the Mining Marshals and embracing practical, innovative ideas that will make the sector more secure and more beneficial to all Nigerians," he said.

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Host communities deserve to benefit from the resources in their land, and there will be consequences for those who ignore that responsibility.

The ongoing reforms aim to create a more transparent, secure, and investment-friendly mining sector, thereby increasing its contribution to Nigeria's economic diversification. The government's intensified focus on enforcing CDAs signals a move towards greater corporate responsibility and equitable benefit-sharing from the nation's mineral wealth.

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I also reaffirmed our commitment to ending illegal mining by strengthening the Mining Marshals and embracing practical, innovative ideas that will make the sector more secure and more beneficial to all Nigerians.