FG to Quarry Company; Conclude Community Development Agreement Or Face

News: FG to Quarry Company; Conclude Community Development Agreement Or Face Sanction.

The Federal Government has given mining and quarrying companies up till December 31, 2025, to conclude their Community Development Agreements with host communities or risk severe sanctions, including revocation of licences and reparations.

In a statement issued on Thursday by the Special Assistant on Media to the Minister of Solid Minerals Development, Segun Tomori, the warning by the minister, Dr Dele Alake, followed a review of companies’ compliance with CDA requirements in the first six months of the year.

The statement read, “Mining and quarrying companies licensed by the Nigerian Mining Cadastral Office since last year are expected to conclude the Community Development Agreements with host communities on or before December 31, this year.”

According to the Ministry’s Mines Environmental Compliance department, 74 new mineral titles were issued in the first half of 2025, but only 24 CDAs were signed.

By law, holders of mineral titles are required to agree with their host communities on specific projects and programmes before commencing extraction.

Figures from the Nigerian Mining Cadastral Office showed that in 2023 alone, 960 small-scale mineral licences, 391 quarry licences, and 37 mining leases were issued, totalling 1,388 titles.

However, only 342 CDAs have been signed to date, leaving a wide gap in compliance.