Alake warns mining firms over host community agreements, threatens licence revocation

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The Minister of Solid Minerals Development, Dele Alake, has warned mining companies operating in Nigeria that failure to comply with their Community Development Agreements (CDAs) could lead to sanctions, including the revocation of their licences.

Mr Alake gave the warning on Saturday during the ministry’s 2026 Ministerial Retreat in Abuja.

He said although the government has made significant progress in reforming the solid minerals sector, greater emphasis would now be placed on accountability and ensuring that host communities benefit from mining activities.

“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,” he stated.

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The minister stressed that companies must honour the agreements reached with their host communities.

“Mining companies that fail to honour their Community Development Agreements will face sanctions, including the revocation of their licences,” he said.

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

Community Development Agreements are legally required arrangements between mining companies and host communities, outlining commitments on social amenities, employment, infrastructure and other development projects.

READ ALSO: Alake calls for united African front to capture greater value from global mineral economy

Illegal mining

Mr Alake also reaffirmed the Federal Government’s commitment to tackling illegal mining across the country.

According to him, the ministry will strengthen the operations of the Mining Marshals while adopting practical and innovative measures to improve security in the sector.

“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.

The minister said the government’s ongoing reforms are aimed at building a more transparent, secure and investment-friendly mining sector capable of contributing more significantly to Nigeria’s economic diversification.