The Nigerian government has revealed the Mining Guidelines for the creation of Community Development Agreements (CDAs) aimed at harmonizing natural resources extraction between the government, mining operators, and host communities. The unveiling of the Revised Guidelines for the CDAs took place in Abuja, the nation’s capital, and was organized by the Ministry of Solid Minerals Development in collaboration with the African Center for Leadership, Strategy, and Development.
Dr. Oladele Alake, the Minister of Solid Minerals Development, urged governments worldwide to introduce mechanisms to regulate natural resources and implement policies that would benefit the host communities, ultimately achieving sustainable development in the sector. Stressing the significance of the Mining Guidelines in mineral operations, the Minister emphasized the increasing use of Community Development Agreements by mining companies as a means to define their relationships and obligations with their host communities, ultimately strengthening and advancing these relationships.
Vision for Community Development Agreements (CDA)
The Minister outlined the general visions of Community Development Agreements, emphasizing the aim to improve relationships between companies, host communities, governments, civil societies, and other stakeholders. The objective is to promote sustainable and mutually rewarding benefits from mining projects to the host communities. He noted that the Federal Government enshrined the Community Development Agreement in the Nigerian Minerals and Mining Act (NMMA) of 2007 to ensure that mining communities are carried along by mining operators, stating that Section 116(1) of NMMA, 2007 makes Community Development Agreements between the Mineral Title Holders and the Mining Communities mandatory.
Objectives of the Guidelines
Dr. Alake emphasized that the mining companies or operators extracting minerals of economic value from the community have obligations to protect and improve the welfare of the community. The aim is to enhance the quality of life through corporate support of educational institutions, community relation programmes, and infrastructural developments such as roads, markets, hospitals, schools, provision of water, electricity, and other activities considered to safeguard the organization’s position. The introduction of the concept of CDA in the Solid Minerals Sector aims to promote a harmonious and mutually beneficial relationship between mining companies and their host communities, preventing the repeat of social crises experienced in the Niger Delta by the oil sector, which may undermine the ongoing efforts of the Federal Government to diversify the monolithic economy.
In his opening remarks, Mr. Monday Osasah, the Director of Leadership Strategy Development, emphasized the importance of mining guidelines for creating a conducive environment for solid minerals extraction, fostering a harmonious relationship with mining companies and the host communities.
Dr. Mary Ogbe, the Permanent Secretary of the Ministry of Solid Minerals Development, explained that the Community Development Agreements (CDA) are a statutory provision to ensure the transfer of socio-economic benefits to mining host communities. This legal document contains obligations by the Mineral Title Holder to her host communities and vice versa. To address gaps and complaints while striving for global best practices, the Ministry revised the Guidelines to meet the evolving needs of the sector.
