The Minister of Solid Minerals Development, Dr Dele Alake, has said mining firms will be sanctioned if they do not comply with the revised Community Development Agreements (CDA).
Alake gave the warning in a statement by his Special Assistant on Media, Mr Segun Tomori, on Tuesday in Abuja.
Recall that the Ministry of Solid Minerals Development on Nov. 16, 2023, launched the revised guidelines for the production of the agreements.
The CDA is a statutory provision that ensured transfer of socio economic benefits to mining host communities.
It is a legal document that contained obligations by the Mineral Title Holder (MTH) to her host community (ies) and vice versa.
Alake stated that the era of disregarding the CDA was over, saying that measures had been put in place to begin enforcement of its compliance and sanction defaulters.
He disclosed that the establishment of the Nigerian Solid Minerals Corporation has reached an advanced stage, adding that the process of creating an enabling law by the National Assembly to guide its operations was underway.
“In working with the legislature to establish the legal and legitimate foundation for the institution, we resolve to ensure that a share structure, in line with private sector-led strategy in which the Federal Government will not hold more than 25 per cent.
“The Nigerian citizens will by public shares hold 25 per cent and private investors, each with a maximum of 10 per cent of the shares of the N1 billion share capital will be achieved,” he said.
According to the minister, government is exploring funding options for integrated minerals exploration project.
He said the project aimed to produce a comprehensive coverage of all categories of minerals across the entire Nigerian landscape.
He further explained that the project could extend to coastal offshores in order to also explore opportunities in deep sea mining.
The minister said that President Bola Tinubu in his determination to address insecurity around mining sites and on other natural resources, set up an inter-ministerial committee to produce a blue print for securing Nigeria’s natural resources.
He said the committee had an expanded meeting with security agencies on Jan. 25, to produce a comprehensive security architecture to secure mineral sites, marine economy and forests.
He said the government was committed to creating an enabling environment for operating business in the sector, through the digitisation of the mining application process through the Electronic Mining Cadastral System.
“Efforts are also being made to improve the Nigerian Mining and Minerals Act 2007 to accommodate the changes over the years and make it more amenable to national priorities,” he said.