Communities Must Agree Before Mining Licences Are Granted—Cadastral

The Nigeria Mining Cadastre Office (MCO) has declared that the future of mining in Nigeria will depend not only on government-issued licences but also on securing the trust, participation and long-term support of host communities, as it unveiled a new framework aimed at repositioning the sector for sustainable growth.

The agency said mining companies must move beyond the traditional model of resource extraction and embrace what it described as a “New Social Contract” anchored on community benefit sharing, environmental responsibility, transparency, traceability and cultural governance.

Director general of the Mining Cadastre Office,  Obadiah Simon Nkom, who spoke through the head of Research, Development and Sustainability Unit, Muhammad Hannatu Indosire, at a masterclass on Social Licence and ESG – The New Social Contract in Abuja, said obtaining a mining title alone can no longer guarantee the success of mining projects.

According to him, while government grants legal rights to mine, only host communities can confer the social legitimacy needed for mining operations to thrive.

“A mining title grants legal rights, but social licence grants legitimacy, while Environmental, Social and Governance (ESG) principles sustain both,” he said.

Nkom explained that global investors and mineral markets are increasingly demanding proof of ethical sourcing, environmental compliance, respect for human rights and measurable benefits to host communities before engaging with mining projects.

He noted that Nigeria’s mining industry must therefore align with evolving international standards by ensuring that local communities become genuine development partners rather than passive observers.

The MCO boss stressed that the Nigerian Minerals and Mining Act, 2007 already provides the legal foundation for this transformation through provisions on Community Development Agreements, environmental stewardship, stakeholder participation and local governance.

He, however, argued that the challenge facing the industry is not the absence of laws but the need to fully implement and modernise existing provisions.

Nkom advocated a new generation of Community Development Agreements that would go beyond compensation for land acquisition to guarantee employment opportunities, skills acquisition, scholarships, enterprise development, healthcare, education, infrastructure and equitable benefit sharing for host communities.

He also called for the deployment of digital mineral traceability systems capable of tracking minerals from extraction to export, saying such measures would improve transparency, boost investor confidence, strengthen revenue accountability and expand Nigeria’s access to premium international markets.

According to him, future buyers will increasingly ask not only what mineral was mined but also where it was mined, how it was extracted, who extracted it and what impact the project had on surrounding communities.

The Mining Cadastre Office further stressed the importance of integrating traditional rulers, youth groups, women organisations, community associations and civil society groups into mining governance, saying cultural legitimacy had become an essential pillar of sustainable mining.

The agency warned that projects which ignore local institutions often struggle with community resistance, prolonged disputes and declining investor confidence.

It also underscored the role of civil society organisations in strengthening transparency, promoting accountability, monitoring Community Development Agreements and building public trust in the extractive sector.

Nkom said sustainable mining can only be achieved when government provides effective oversight, investors embrace responsible mining practices, communities actively participate in decision-making, traditional institutions safeguard cultural governance and civil society ensures accountability.

He maintained that Nigeria possesses the legal framework required to become a global leader in responsible mining, insisting that faithful implementation of the Nigerian Minerals and Mining Act would unlock greater investment while ensuring that mineral wealth translates into tangible development for host communities.

“The future of mining will not be secured by extraction alone. It will be secured by trust, traceability, benefit sharing, cultural legitimacy and the faithful implementation of the social contract between mineral wealth and the people to whom that wealth ultimately belongs,” he said.