Mining Companies Fall Short on Payments to Host Communities – It’s no secret that mining companies have a massive impact on their host communities. From jobs to local economies to the environment, the footprint of these industries can be felt far and wide. Yet, a recent report by the Nigeria Extractive Industries Transparency Initiative (NEITI) has unveiled some troubling trends.
In NEITI’s latest report for the Solid Minerals Industry of 2021, a glaring fact emerged: a whopping 82 out of 121 mining companies failed to uphold their commitment to making mandatory social payments to their host communities. This means that only 39 companies adhered to the community development agreement (CDA) they had signed with the communities housing their operations. Even more concerning? Ten of these companies only made non-mandatory social payments.
These figures reflect a concerning disregard for the agreements made between mining companies and their host communities. Specifically, the non-compliance with the mandates of the NMMA 2007 and NMMR 2011 set within the CDAs.
But the bad news doesn’t stop at financial commitments. The NEITI report also highlighted a glaring disregard for environmental standards. Out of the 121 companies, only 50 (or 41.32%) fully met environmental regulations. This suggests a widespread neglect of environmental responsibility in the industry.
In light of these findings, NEITI has made a clarion call to the Ministry of Solid Minerals and the Mining Cadastre Office. They’ve recommended the creation of a comprehensive framework to ensure that mining companies comply with the Mineral and Mining Act 2007 and the Minerals and Mining Regulations, 2011. This includes the establishment of penalties for non-compliance and the diligent execution of these penalties.
Olamilekan Adegbite, the former Minister of Mines and Steel Development, has been vocal about the need for mining companies to uphold the terms of their Community Development Agreements. Speaking to the importance of these CDAs, Adegbite explained, “It is an agreement with the host community wherein a set of projects is agreed upon, and everyone is bound to follow it for a period of five years.” He emphasized the importance of a symbiotic relationship, where communities prosper as mining companies do.
For mining companies, the message is clear: honoring commitments to host communities isn’t just a legal obligation; it’s a matter of ethical and environmental responsibility.
