Ebonyi Commissioner, Nkah Urges Mining Companies To Ensure Transparency In CDA

By Alex Odeh, Pan Afric Reporters

The Ebonyi State Government has warned against the diversion and mismanagement of funds meant for mining host communities, insisting that all benefits accruing from Community Development Agreements (CDAs) must be transparently accounted for and delivered to their intended beneficiaries.

The Commissioner for Solid Minerals Development, Chief Chinedu Nkah, gave the warning during the ceremonial flag-off and presentation of development commitments by First Patriots Limited to Ameka community in Ezza South Local Government Area of the state.

Nkah said the government would no longer tolerate a situation in which mining companies made payments to a handful of community leaders without disclosing the amounts or their intended purposes to the wider community.

He explained that the administration of Governor Francis Nwifuru had introduced stricter oversight of mining-related community benefits to ensure that host communities received tangible returns from the exploitation of their mineral resources.

According to him, the CDA framework is designed to address longstanding complaints that mining communities were deprived of the benefits of mineral exploitation while bearing its social and environmental consequences.

“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,” the commissioner said.

He added that the ministry had directed mining companies to notify the government before making presentations to host communities, stressing that such transactions must be conducted openly and documented.

“Under my watch as Commissioner for Solid Minerals, I have told all the mining companies that, before you make any presentation, we must be aware. The community must be aware. It is no longer business as usual,” he said.

Nkah, however, cautioned the Ameka community against announcing scholarship beneficiaries or making commitments without following the prescribed verification and approval procedures.

He said the ministry had not received the scholarship list before the ceremony and would therefore not validate any proposed number of beneficiaries until the necessary consultations and checks had been completed.

The commissioner also called for realistic scholarship commitments, noting that the amount allocated must correspond with the number of students the available funds could adequately support.

He said the community’s leadership and relevant committees would be required to submit their lists to the ministry for review before disbursement, adding that the process would involve representatives of the community and the ministry’s technical committee.

Nkah further disclosed that the ministry would convene a meeting involving First Patriots Limited and the leadership of Ameka community to discuss development concerns, particularly the state of infrastructure in the mining area.

Expressing dissatisfaction with the condition of the road leading to the community, he said the existence of mineral resources should translate into measurable improvements in the living conditions of residents.

The commissioner urged stakeholders to prioritise peace, accountability and the equitable distribution of benefits, warning that disagreements over the management of community resources could undermine development.

Under the commitments presented at the event, N20 million was earmarked for scholarships, N10 million for apprenticeship and skills acquisition, and N5 million for the Ameka women’s August meeting. Ten motorcycles were also presented for the community’s security outfit.

Chairman of the Ameka Community Development Agreement Implementation Committee, Mr Chibueze Uguru, said the committee had worked to promote peaceful mining operations and ensure compliance with the agreement between the community and the company.

Uguru said the committee had harmonised competing interests among landowners, established a community security structure and helped restore calm at the mining site.

He also disclosed that the company had paid outstanding allowances to the traditional ruler and fulfilled other financial commitments under the agreement, including an annual N2 million provision for the traditional ruler and his cabinet and N1 million for the ward councillor.

The committee chairman said the relevant receipts were available to support the payments, adding that the company had demonstrated cooperation with the implementation process.

He appealed to residents and other stakeholders to support the agreement’s implementation, arguing that peaceful operations and mutual cooperation were necessary to translate the community’s mineral wealth into sustainable development.

In his remarks, the Chairman of the Ameka Town Union Caretaker Committee, Justice Paul Elechi, described the initiative as a significant milestone for the mining community.

Elechi said the scholarship programme was particularly important to the community’s educational aspirations and called on the government and First Patriots Limited to ensure that deserving students benefited from the scheme.

He said the community had reviewed its proposed beneficiaries to ensure representation across its four villages and kindred groups, urging the ministry to consider the list through the established approval process.

The Commissioner for Commerce and Industry, Chief Oguzor Offia-Nwali, commended the community and the company for pursuing a structured development arrangement, saying the state government’s policy was intended to ensure that mineral exploitation produced tangible benefits for host communities.

He urged the people of Ameka to cooperate with the government and the company, while emphasising the need for the community to hold the operator accountable for its obligations under the agreement.

Offia-Nwali also said the government expected mining companies to respect their commitments and maintain cordial relationships with host communities.

Meanwhile, the Executive Director of First Patriots Limited, Mr Satyanarayana Penneru, reaffirmed the company’s commitment to implementing the CDA in collaboration with the community and the state government.

Penneru said the company was fully prepared to ensure transparency in the execution of its obligations and would work with relevant stakeholders to deliver the agreed interventions.

He said cooperation among the company, the community and government authorities was essential to sustaining peaceful operations and achieving the development objectives of the agreement.

Former member of the Ebonyi State House of Assembly, Mr Emmanuel Aleke, also commended the state government, community leaders, youths and security personnel for their participation in the initiative.

Aleke expressed appreciation to the government delegation and called for sustained engagement to ensure that the community continued to benefit from its mineral resources.

Mr Godwin Nwogha, also said the development initiative formed part of broader efforts by the Ebonyi State Government to strengthen oversight of mining operations and ensure that Community Development Agreements deliver measurable social and economic benefits to host communities.