Can the COVID-19 Crisis Become a Catalyst for Growth in the Nigerian Mining Industry?

The COVID-19 oil crash put Nigeria in an economic bind as demand plummeted and the country, one of the world’s largest oil producers, slashed production. At the same time, the process of building back in the aftermath of COVID-19, provides the government of Nigeria with new opportunities to diversify and transition towards a more resilient economy. The mining industry, as stated in the Economic Recovery and Growth Plan has the ability to play a catalytic role in boosting up the economy. In achieving this growth, specific attention must be paid to the rights and opportunities of local communities.

Issues of conflict and insecurity arise when the prosperity fueled by the extraction of minerals and fossil fuels is not shared with the communities impacted by the operations. Such communities are often worse off as a result of environmental degradation and pollution and loss of livelihoods; to name a few. This report looked specifically at the implementation of Community Development Agreements (CDAs), and to what extent successful community engagement can attract increased private sector investment.

CDAs can be a vital mechanism for ensuring that local communities’ benefit from mining investment projects. Under the Nigerian Minerals and Mining Act of 2007, CDAs attempt to ensure these benefits, but there is currently little adherence or oversight. The following report aimed to inform the Solid Minerals Development Fund (SMDF) about international practices and provide a set of recommendations to help mining companies successfully secure community acceptance and partnership for their projects.