The director-general of the Mining Cadastre Office, Obadiah Nkom, has urged mining companies to secure a social licence to operate from host communities.

Mr Nkom made the call during his master class presentation at the fifth African Natural Resources and Energy Summit (AFNIS) on Thursday in Abuja.

Mr Nkom described SLO as essential for sustainable mining, stressing that obtaining a mineral title was no longer enough for successful operations.

“Corporate trust and community programmes are critical. We cannot talk about sustainable mining when a company obtains a mineral title but lacks community trust. There is a need for a social licence to operate. The new social contract promotes equity, connectivity and shared benefits,” Mr Nkom said.

Mr Nkom also mentioned that mining companies must build lasting relationships with host communities rather than focus only on mineral extraction, saying, “We must move from resource extraction to shared value. Mining companies should adopt models based on transparency, accountability and sustainable development.”

Mr Nkom noted that the global mining sector was shifting from traditional extraction methods to practices anchored on ESG compliance and community participation. He said Community Development Agreements should move beyond legal obligations to become practical tools for local development.

According to him, the Nigerian Minerals and Mining Act provides a framework for sustainable mining and recognises mineral resources as belonging to Nigerians.

“All mineral resources are vested in the President on behalf of Nigerians. Companies receiving mining titles must operate responsibly and pay required royalties,” Mr Nkom said.

Mr Nkom explained that such revenues were expected to support communities through established sharing arrangements that promote social equity. He warned that mining firms ignoring community interests could face opposition capable of disrupting their operations.

“Communities today are more informed and organised. They can interrupt projects if they feel excluded or their interests are not protected,” Mr Nkom stated.

The MCO boss urged operators to embrace ESG principles across all mining activities, describing them as fundamental to responsible mining and noting that environmental protection, social inclusion, transparency, accountability, and stakeholder participation “are no longer optional”.

Mr Nkom said the Minerals and Mining Act 2007 remained a foundation for responsible mining through its focus on benefit sharing and environmental responsibility.

“Our goal is to ensure mining projects are not disrupted because communities feel neglected. When communities are carried along and benefit from mining, everyone wins, including investors, government and the people,” he said.

(NAN)