This commissioned paper presents a comparative analysis of Community Development Agreements (CDAs) and Incorporated Community Development Trusts (ICDTs) as tools for delivering social and economic benefits to mining host communities in Nigeria. It outlines how both mechanisms emerged to address the failures of voluntary corporate social responsibility (CSR), but differ significantly in structure, funding, and regulatory oversight. While CDAs are contract-based and regulated by ministry-issued guidelines, ICDTs—established under the Petroleum Industry Act—benefit from stronger legal frameworks, dedicated funding, and enforceable sanctions.

The paper argues that CDAs, despite being in use since 2007, suffer from weak institutional support, lack of inclusivity, and limited enforcement. In contrast, ICDTs offer a more robust model that prioritizes sustainability, legal clarity, and community empowerment. The study recommends adapting the ICDT model for solid minerals governance, strengthening the capacity of host communities, and institutionalizing inclusive, well-funded benefit-sharing mechanisms in Nigeria’s extractive sector.