Ebonyi mining companies have been directed by the Ebonyi State Government to notify relevant authorities before making agreements or presenting development commitments to host communities. The government said all mining-related transactions must be transparent, properly documented and designed to ensure that host communities benefit from the exploitation of their mineral resources.
The Commissioner for Solid Minerals Development, Chief Chinedu Nkah, issued the directive on Thursday during the flag-off and presentation of development commitments by First Patriots Limited to Ameka community in Ezza South Local Government Area of Ebonyi State.
Nkah warned that the government would no longer tolerate situations where mining companies made payments to a few community leaders without disclosing the amounts involved or explaining how the funds would be utilised.
He said the administration of Governor Francis Nwifuru was strengthening its oversight of mining operations and Community Development Agreements (CDAs) to ensure that host communities received tangible benefits from mineral exploitation.
According to the commissioner, the CDA framework was introduced to address longstanding concerns that mining communities often suffer the environmental and social consequences of mining without receiving adequate economic and infrastructural benefits.
“In the past, mining communities were cheated and ripped off. We want communities in Ebonyi State to begin to benefit from companies mining in their areas. That is the essence of the CDA,” Nkah said.
He added that mining companies must notify the ministry and the affected communities before making any development presentations or financial commitments.
Under the new directive, community leadership and relevant committees must submit their proposed beneficiary lists to the Ministry of Solid Minerals Development for review before funds are disbursed. The process will involve community representatives and the ministry’s technical committee.
The commissioner also disclosed plans to convene a meeting between First Patriots Limited and the leadership of Ameka community to address development concerns, particularly the poor condition of roads serving the mining area.
Nkah expressed dissatisfaction with the state of the road leading to the community, stressing that the presence of valuable mineral resources should result in visible improvements in residents’ living conditions.
He urged the mining company, community leaders and other stakeholders to prioritise peace, accountability and fairness in the distribution of benefits, warning that disputes over community funds could undermine development efforts.
The directive follows previous concerns over mining agreements in the state, including a case in which an Ebonyi community suspended mining operations over an alleged breach of its development agreement.
The commissioner maintained that mining activities in Ebonyi State must deliver measurable benefits to host communities rather than leave residents to bear the consequences of mineral exploitation without adequate compensation.
The Executive Director of First Patriots Limited, Mr Satyanarayana Penneru, reaffirmed the company’s commitment to implementing its Community Development Agreement in collaboration with Ameka community and the Ebonyi State Government.
Penneru said the company was prepared to fulfil its obligations transparently and work with relevant stakeholders to implement the agreed development projects.
He emphasised that cooperation between the mining company, community representatives and government authorities was essential to maintaining peaceful operations and achieving the objectives of the agreement.
The Commissioner for Commerce and Industry, Chief Oguzor Offia-Nwali, who hails from Ameka community, also commended the community and First Patriots Limited for pursuing a structured development arrangement.
Offia-Nwali said the state government’s policy was designed to ensure that mining activities translated into practical benefits for host communities.
He encouraged residents to cooperate with the government and the company while holding the mining operator accountable for its commitments under the agreement.
He further urged mining companies in Ebonyi State to honour their obligations and maintain cordial relationships with the communities where they operate.
The Chairman of the Ameka Community Development Agreement Implementation Committee, Mr Chibueze Uguru, said the committee had taken steps to promote peaceful mining operations and ensure compliance with the agreement.
Uguru explained that the committee had harmonised competing interests among landowners, established a community security structure and helped restore calm at the mining site.
He disclosed that First Patriots Limited had paid outstanding allowances to the traditional ruler and fulfilled other financial obligations under the agreement.
According to him, the commitments included an annual provision of ₦2 million for the traditional ruler and his cabinet, as well as ₦1 million for the ward councillor.
Uguru said receipts were available to verify the payments, adding that the company had cooperated with the committee in implementing the agreement.
He appealed to residents and other stakeholders to support the process, noting that peaceful mining operations and cooperation among all parties were necessary to transform Ameka’s mineral resources into sustainable community development.
The Chairman of the Ameka Town Union Caretaker Committee, Justice Paul Elechi, described the presentation of the development commitments as an important milestone for the community.
Elechi particularly welcomed the scholarship initiative, describing it as an opportunity to support the educational aspirations of young people in Ameka.
He called on the Ebonyi State Government and First Patriots Limited to ensure that eligible students benefited from the scholarship programme.
The development commitments presented at the event included ₦20 million for scholarships, ₦10 million for apprenticeship and skills acquisition, and ₦5 million for the Ameka women’s August meeting.
The commitments are expected to support education, vocational training, women’s activities and community security while strengthening relations between First Patriots Limited and its host community.
In addition, 10 motorcycles were presented to support the community’s security outfit.
The Ebonyi State Government’s directive places renewed emphasis on transparency in mining-related agreements and the need to ensure that communities hosting mining operations receive the benefits promised under their Community Development Agreements.
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