The Ministry of Solid Minerals Development (MSMD) has issued a firm deadline for mining and quarrying companies to complete their Community Development Agreements (CDAs) with host communities.
The ministry, in a statement on Friday, said Minister of Solid Minerals Development, Dele Alake, stated that all licensed companies must have their CDAs in place by December 31, 2025.
This directive follows a review of CDA compliance over the first six months of the year, which revealed a significant gap between the number of licenses issued and agreements signed.
According to a report from the Mines Environmental Compliance (MEC) department, out of 74 new mineral titles granted in the first half of 2025, only 24 CDAs were finalised.
The minister highlighted this disparity, noting that thousands of mineral titles have been issued, yet only 342 CDAs have been signed to date.
Alake stressed that responsible mining, adhering to international Environmental, Social, and Governance (ESG) standards, is a top priority.
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He warned that companies failing to meet the deadline would face severe penalties, including the revocation of their licenses and potential demands for reparations for any minerals already extracted.
Alake urged communities to form expert teams of retired professionals to ensure they negotiate for valuable, long-term projects that benefit the entire community. He also cautioned traditional rulers and community leaders against accepting personal gifts that could compromise the negotiation process.
The minister praised the MEC department, led by Vivian Okono, for recently shutting down three companies—Istanbul, Venus, and Cornerstone—for their sluggishness in concluding CDA negotiations.
He emphasised that this action serves as a clear warning that the government will not tolerate non-compliance.
