Mining and quarrying companies, licensed by the Nigerian Mining Cadastral Office (MCO) since last year, are to conclude Community Development Agreements (CDAs) with host communities on or before December 31 this year.

Minister of Solid Minerals Development, Dr Dele Alake, issued the deadline following the review of the performance of companies on the CDA in the first six months of this year, based on the report of the Mines Environmental Compliance (MEC) department of the ministry.

According to the report, although there were 74 new mineral titles in the period under review, only 24 CDAs were signed.

In 2023, the MCO issued 960 small-scale mineral licences, 391 quarry licences, and 37 mining leases, totalling 1,388 titles that should proceed to sign CDAs before starting extraction. Last year, the MCO issued 728 small-scale mining licences, 198 quarry licences, and 28 mining leases, totalling 954 mineral titles whose owners were obliged by law to engage communities and sign CDAs before embarking on mineral operations.

The minister highlighted the wide gap between the thousands of mineral titles issued and the only 342 CDAs signed so far, underscoring the urgent need for compliance.

He urged communities to set up quality teams comprising retired professionals, who can bring their expertise to the table during negotiations and secure legacy projects and programmes to benefit the youth, women, and the community at large.

Alake advised community leaders and traditional rulers not to undermine the outcome of CDA negotiations by demanding personal gifts from companies when their communities deserve much more, or recommending contractors who do shoddy projects and pocket what the communities should benefit.