Social Licence: The New Imperative for Sustainable Mining Investment in Nigeria
The bedrock of sustainable mining operations in Nigeria hinges on robust community engagement, social justice, and inclusive development, according to Engr. Simeon Nkom, Director-General and CEO of the Nigeria Mining Cadastre Office (NMCO). Speaking at the 5th African Natural Resources and Energy Investment Summit (AFNIS 2026) in Abuja, Nkom articulated a compelling vision for a paradigm shift in the sector, moving beyond mere resource extraction towards genuine, shared partnerships.
Nkom underscored the critical need for a “new social contract” that actively prioritises community participation and ensures tangible, shared benefits derived from mining activities. “The desired shift today is to move from resource extraction to shared partnership,” he stated. “Mining companies must go into communities not just for mining, but for creating relationships and building trust.” This sentiment, reported by The Authority on June 26, 2026, highlights a fundamental reorientation required for the industry.
Existing Nigerian mining legislation already mandates Community Development Agreements (CDAs), designed to channel benefits to host communities through employment opportunities, skills acquisition programmes, scholarships, and investments in healthcare, education, and infrastructure. However, Nkom stressed that legal access granted by a mining title is insufficient; true legitimacy stems from a social licence to operate. He issued a stark warning: communities possess the power to disrupt projects if their interests are disregarded, underscoring that “A mining title may grant legal access, but social licensing grants legitimacy.”
The NMCO chief also drew attention to the escalating significance of Environmental, Social, and Governance (ESG) standards and mineral traceability. Investors are increasingly scrutinising mining ventures for demonstrable evidence of responsible practices and positive community impact before committing capital. To achieve sustainable outcomes, Nkom urged mining companies to proactively engage traditional institutions, community leaders, civil society organisations, women, and youth in their decision-making processes. “The future of mining will not be supported by extraction alone,” he concluded. “It will be supported by social licensing, community participation and the effective implementation of the new social contract.” This evolving landscape demands that legal and compliance professionals, general counsel, and corporate executives prioritise these non-legal, yet critical, operational requirements to secure long-term viability and investor confidence.
