The “Guidelines for the Production of Community Development Agreement in the Solid Minerals Sector” (the “Guidelines”) were formally introduced on November 16, 2023, by Dr. Dele Alake, the Honourable Minister of Solid Minerals Development. In accordance with Section 116 of the Nigerian Minerals and Mining Act, 2007 (the “Act“), the Guidelines were released.
What you need know about the main components of the new CDA provided in this article. In addition to the Act’s provisions and the 2011 Nigerian Minerals and Mining Regulations, the Guidelines highlight the essential components of a CDA, which comprise:
i. Schedule and Procedure
In terms of timing and procedure, the Guidelines state that, in the case of new projects, host community engagements must begin before mine development; in the case of projects that are already underway, they must also begin before an existing CDA expires. The Guidelines also provide that CDAs have a five-year duration.
ii. Involved Stakeholders
The Guidelines emphasise that stakeholders should actively participate in determining the requirements of their community in order to enhance stakeholder participation. The goal of this strategy is to guarantee strong connections to current initiatives and development procedures while fostering local ownership of CDA components.
iii. Identification and Representation of the Community
Furthermore, the Guidelines give special attention to host communities that are located outside of the project region. For example, even though they are not regarded as host communities under a CDA, localities impacted by the project’s transportation routes, supply networks, and employment catchment areas may be regarded as interested stakeholders. The Guidelines for community representation specify that, although it is desirable to have representation for all groups, it is not feasible to have every member of the community present at the negotiation table. Rather, the involvement usually consists of representatives of host communities and certain stakeholders, with public forums and focus groups serving to keep the larger community informed.
iv. Clear Delineation of Parties’ Roles and Responsibilities and Funding of the CDA Process
As per the Guidelines, the Mineral Title Holders are responsible for covering the cost of implementing the CDA process in compliance with the current laws and regulations in Nigeria. In the event that the community chooses to hire a lawyer, the community will be responsible for paying the lawyer’s expenses.
v. Mechanisms for Grievance and Dispute Resolution
The Guidelines stress how crucial it is to have sufficient grievance procedures in the CDA. According to the Act, complaints must be addressed to the Honourable Minister for resolution; if that doesn’t work, the issue will be forwarded to the Laws of the Federation of Nigeria, Cap. A18, Arbitration and Mediation Act, or any statutory amendment thereto, in this case, the Arbitration and Mediation Act, 2023.
vi. Monitoring and Implementing CDA
Representatives from the stakeholder groups should serve on the committee, and the CDA must include implementation and monitoring measures. To that aim, by the conclusion of the first quarter of the subsequent year, an annual report must be delivered to the Ministry.
