Benue and Nasarawa States sit on significant deposits of solid minerals, and the questions that follow are practical ones. A company wants to explore and does not know which title it needs. A community finds mining activity on its land and has not been consulted. A landowner has been offered compensation and cannot tell whether it is fair.
The law
What the law provides
Under the Constitution, all minerals in Nigeria are vested in the Federal Government. The Nigerian Minerals and Mining Act 2007 and the Nigerian Minerals and Mining Regulations 2011 govern who may explore for and exploit them, and on what terms.
Mineral titles — reconnaissance permits, exploration licences, small-scale mining leases, mining leases and quarry leases — are granted through the Mining Cadastre Office. Holders are subject to obligations on environmental protection, payment of royalties and fees, and reporting.
The Act also protects host communities and landowners. A mining lease holder must conclude a community development agreement with the host community, and the owner or occupier of land is entitled to compensation for disturbance of surface rights and damage to crops, trees and structures.
The process
What happens in practice
For a title applicant, the process runs through application to the Mining Cadastre Office, consent of the owners or occupiers of the land, environmental requirements and the grant of title. For communities and landowners, the process is one of engagement: identifying the title holder, negotiating the community development agreement and compensation, and pursuing the remedies the Act provides where those duties are not met.
Our role
How the firm acts
We advise on the appropriate mineral title and assist with applications and renewals, prepare and negotiate community development agreements and compensation arrangements, advise on compliance with the Act and the Regulations, and act in disputes over land, compensation and mining rights, including before the courts.
Questions
Questions clients commonly ask
Who owns minerals found on my land?
Minerals are vested in the Federal Government. The owner or occupier of the land keeps rights in the surface and is entitled to compensation where mining disturbs them.
Can mining start on community land without consultation?
The Act requires consent of the owners or occupiers of land for access and requires a mining lease holder to conclude a community development agreement with the host community.
Which licence does a small operator need?
It depends on the scale and the mineral. The Act provides for small-scale mining leases and quarry leases alongside larger titles. Advice should be taken before any activity begins.
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