Business
Alake warns mining firms over host community agreements, threatens licence revocation
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.
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.
Tony Elumelu played a supreme role in getting investment bank Afrinvest back on track in 2011 after the global financial meltdown pushed the investment bank to the brink, its chief executive recalled in a letter to the tycoon seen by PREMIUM TIMES.
The multisectoral magnate, who is the top shareholder of United Bank for Africa, the Transcorp Group, and Seplat Energy, granted a soft loan of $1 million to Ike Chioke, the CEO of the financial institution, as a mark of urgent support when the firm direly needed the cash to recapitalise, the latter said.
“Fifteen years ago, Afrinvest was navigating one of the most challenging periods in its history, as we struggled to rebuild and recapitalise the business in the aftermath of the global financial crisis,” Mr Chioke said.
“At that critical juncture, when the future was far from certain, you made the remarkable decision to lend me US$1 million of your personal funds. You placed your confidence not simply in the prospects of a business but in me as an individual, my integrity, my determination and my conviction that Afrinvest could emerge stronger from adversity.”
This June, Mr Chioke eventually completed the repayment of the credit, according to the letter, describing the gesture as an extraordinary act of friendship, generosity and trust.
READ ALSO: Afrinvest repays undocumented $1 million from Elumelu with interest
Mr Elumelu, whose economic vision is anchored on what he calls “Africapitalism” – an investment philosophy that prioritises the private sector’s role in democratising the wealth Africa needs to power large-scale growth, has been involved in active philanthropic initiatives on the continent.
In March, his foremost charity project, the Tony Elumelu Foundation, turned sixteen, and he said the initiative had disbursed over $100 million in seed capital to 24,000 entrepreneurs in Africa and created more than 1.5 million jobs over the period.
The foundation expects to fund an additional 3,200 entrepreneurs this year, it said in September.
Mr Chioke applauded the profound impact Mr Elumelu’s financial assistance has had on Afrinvest, notably transforming it into a diversified regional financial services group with an expanding universe of clients and operations in asset management, investment banking, research & consulting, and securities trading.
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