Lafia, Nasarawa State – May 13th, 2025 – In a significant move aimed at overhauling the mining sector and fostering sustainable development within its mineral-rich communities, the Nasarawa State House of Assembly is set to officially pass the much-anticipated “Bill for a Law to Provide for the Regulation and Control of Issuance of Land Consent and Community Agreements to Mining Entities by Mining Communities and Other Matters Related Thereto” into law today.
The announcement was made by the Speaker of the House, Rt. Hon. Dr. Danladi Jatau, following extensive deliberations and the unanimous adoption of the committee report on the bill. This private member bill, championed by Hon. Daniel Ogazi, representing the Kokona East constituency, is widely expected to address the persistent challenges of illegal mining activities that have plagued the state and to ensure that mining operations contribute meaningfully to the well-being of host communities.
Speaking during the House proceedings in Lafia, Rt. Hon. Dr. Jatau emphasized the transformative potential of the legislation. He stated that upon passage and subsequent assent, the law would provide a robust framework for regulating the interaction between mining companies and local communities, thereby mitigating conflicts and promoting responsible mining practices.
A cornerstone of the bill is the mandatory establishment of a Community Development Fund (CDF). According to Section Three of the proposed law, mining entities and companies will be obligated to contribute 5% of their annual revenue to this fund. This financial commitment is specifically designed to foster the sustainable welfare of mining communities through the provision of crucial infrastructural projects and essential social services, encompassing education, healthcare, and livelihood support programs.
The utilization of the CDF will be strategically divided, with 50% of the funds earmarked for direct cash payments to the benefiting communities, providing immediate economic relief and empowerment. The remaining 50% will be directed towards financing tangible development projects within these communities, ensuring long-term and sustainable improvements in their living standards and overall infrastructure.
To ensure transparency and accountability in the management and utilization of these funds and agreements, Section Four of the bill mandates the establishment of a Community Development Monitoring Unit (CDMU). This crucial body will be vested with significant responsibilities, including:
- Reviewing and approving Community Development Agreements (CDAs) negotiated between mining entities and host communities.
- Meticulously monitoring the implementation of community development projects to guarantee their successful execution and impact.
- Conducting thorough audits of financial allocations and expenditures related to community development initiatives, ensuring judicious use of resources.
Furthermore, Section Five of the bill places a clear obligation on mining companies to maintain transparency in their community engagement. They will be required to submit detailed annual reports on their community development expenditures and project execution to both the CDMU and the relevant Local Government Area. This measure aims to keep stakeholders informed and facilitate effective oversight.
Recognizing the importance of compliance, the bill also outlines stringent penalties for any breach or non-compliance with its provisions, particularly concerning reneging on agreed-upon Community Development Agreements. The stipulated penalties are as follows:
- For Corporate Mining Entities/Companies: A substantial fine of Ten Million Naira (₦10,000,000.00) or a minimum of two (2) years and a maximum of five (5) years imprisonment, or both.
- For any Individual or Person: A fine of Five Million Naira (₦5,000,000.00) or a minimum of two (2) years and a maximum of five (5) years imprisonment, or both.
- For any Group of Persons or Individuals: Each individual within the group shall be liable to pay a fine of Five Million Naira (₦5,000,000.00) or face a minimum of two (2) years and a maximum of five (5) years imprisonment, or both.
The Majority Leader of the House, Hon. Suleiman Yakubu Azara, moved the motion for the adoption of the committee report, which was swiftly seconded by the Minority Leader, Hon. Luka Iliya Zhekaba. The House demonstrated its unified commitment to this crucial legislation by unanimously adopting the report, paving the way for its final passage into law today.
The passage of this bill marks a significant milestone in Nasarawa State’s efforts to regulate its burgeoning mining sector effectively, protect the interests of its communities, and ensure that mineral wealth translates into tangible benefits for its citizens. Stakeholders and community members are keenly awaiting the final enactment of this law, hopeful that it will usher in an era of more responsible, transparent, and mutually beneficial mining operations in the state.
The Nigerian Mineral Exchange (NME), Nigeria’s premier mining marketplace, actively supports and champions initiatives that promote sustainable mining practices and foster social development within Nigerian mining communities, recognizing the vital role of responsible legislation in achieving these goals.
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