The Director-General and Chief Executive Officer of the Nigeria Mining Cadastre Office (NMCO), Engr. Simeon Nkom, has stressed that the future of sustainable mining in Nigeria and across Africa lies in building strong partnerships with host communities through social justice, transparency, and inclusive development.
Speaking on the second day of the 5th African Natural Resources and Energy Investment Summit (AFNIS 2026) in Abuja, Nkom advocated for the implementation of a "new social contract" that places communities at the centre of mining operations and resource governance.
According to him, sustainable mining can no longer be measured solely by the quantity of minerals extracted, but by the extent to which mining activities create shared value and improve the welfare of host communities.
“The desired shift today is to move from resource extraction to shared partnership. Mining companies must go into communities not just for mining, but for creating relationships and building trust,” he said.
Nkom, who was represented by the Head, Research, Development and Sustainability Unit, Mrs. Hannatu Indo Muhammad, explained that Nigeria's mining reforms, particularly the Nigerian Minerals and Mining Act, were designed to ensure the sustainable management of mineral resources while protecting community interests through Community Development Agreements (CDAs).
He noted that all mineral resources in Nigeria are held in trust for the people by the Federal Government, making it imperative for mining companies to fulfil their obligations, including the payment of royalties and compliance with community development commitments.
“The minerals belong to the Nigerian people. That is why every mineral title holder engaged in production must pay royalties. This encapsulates social equity and helps build trust because communities ultimately benefit from the sovereign wealth generated,” he stated.
The NMCO boss emphasized the growing importance of a "social licence to operate," describing it as the continuous acceptance and approval of mining operations by host communities.
He warned that communities are increasingly informed and capable of resisting projects that fail to consider their interests.
“A mining title may grant legal access, but social licensing grants legitimacy. When communities are not carried along, projects can be delayed or even disrupted,” he said.
Nkom further highlighted the role of Environmental, Social and Governance (ESG) principles in modern mining, stressing that responsible mining practices, transparency, accountability and community participation have become critical benchmarks for investors and regulators.
He referenced the Federal Government's review of Community Development Agreements in 2023, noting that the framework was strengthened to ensure communities benefit directly from mining activities through local employment, skills acquisition, scholarships, enterprise development, healthcare, education and infrastructure projects.
“When mining companies employ people from host communities and invest in their development, they are building trust. Communities must participate in the value that is created,” he said.
The mining expert also underscored the increasing significance of traceability in global mineral supply chains, noting that international financiers and investors now demand clear evidence of where minerals originate, how they are processed, and the social impact of mining operations.
“If you do not have a social licence to operate, it will be difficult to secure funding. Investors want to know where the minerals come from, who processed them, where they are going, and what impact the operations have on communities,” Nkom explained.
He added that successful community engagement requires broad stakeholder participation, including traditional rulers, community leaders, women and youth groups, civil society organisations, community development associations and cultural institutions.
According to him, inclusive consultation and collaborative decision-making are essential to achieving long-term sustainability and preventing conflicts between mining companies and host communities.
“Projects that respect cultural governance build stronger social licences and deliver more sustainable outcomes,” he noted.
Nkom concluded that while Nigeria already has the legal and policy frameworks needed to support sustainable mining, the priority should now be effective implementation.
“The future of mining will not be supported by extraction alone. It will be supported by social licensing, community participation and the effective implementation of the new social contract,” he said.
The AFNIS 2026 summit brought together policymakers, investors, industry leaders and development stakeholders to discuss strategies for advancing Africa's natural resource and energy sectors while promoting sustainable development and inclusive economic growth.