Illegal operators leave a trail of environmental destruction, but hope on the horizon
By Steven Kefas and Segun Onibiyo
In the sunbaked earth of Africa’s most populous nation, Nigeria, a new gold rush is underway. But this isn’t about the glittering metal that has long captivated humanity. Instead, it’s for a dull, soft metal that could power our green future: lithium, what many people believe to be “the green gold.” As the world races to electrify, Nigeria finds itself sitting on a potential goldmine. Yet, as with many of Africa’s resource blessings, this one comes with a catch – and it’s wearing a Chinese face.
The Promise and the Peril
Nigeria, one of the top four largest economies of Africa, has long been known for its oil wealth. But as the world pivots away from fossil fuels, the West African nation is eyeing a new boom in battery metals. Lithium, the lightweight metal essential for electric vehicle batteries, has been discovered in abundance across several Nigerian states. It’s a discovery that could transform the nation’s economy and position Nigeria as a key player in the global green energy transition.
However, the reality on the ground tells a more complex story. Instead of orderly development bringing wealth and jobs to local communities, Nigeria’s lithium fields have become a Wild West of illegal mining, environmental degradation, and murky deals with Chinese companies.
“Chinese backed locally incorporated companies are illegally mining in Nigeria in great numbers,” says IK Solomon Akwanga, a small scale miner, entrepreneur and public affairs commentator based in mineral rich Nasarawa State. “Few are legally licensed to mine. Chinese groups are building lithium concentrators in several states. The demand for lithium ore for these concentrators fuels illegal mining, completely negating the efforts of Nigeria’s Department of Mines to stamp out illegal mining.”
The Chinese Connection
At the heart of this lithium labyrinth lies a web of Chinese interests. While China’s appetite for African resources is nothing new, the tactics employed in Nigeria’s nascent lithium industry are raising eyebrows and concerns.
Chinese companies have moved swiftly to establish processing plants across Nigeria. On paper, this looks like the kind of value-adding investment that African nations have long sought. Governor Abdullahi Sule of Nasarawa State proudly announced a new lithium concentrator with a capacity of 4,000 metric tons per day. But scratch beneath the surface, and the picture becomes murkier.
Many of these operations are shrouded in opacity. Local Nigerian companies often serve as fronts for Chinese investors, with ownership hidden behind a maze of entities registered in Europe or elsewhere. This complex structure makes it challenging to pinpoint who truly benefits from Nigeria’s mineral wealth, according to Dr Ogbu Andrew, a mineral entrepreneur based in Calabar.
Take the case of Ajans Investment Nigeria Ltd. With a Nigerian face – Lukeman Omuya, editor-in-chief of Nigeria’s Rockpost mining magazine. The company claims to be building a lithium concentrator in Niger State, yet, digging deeper reveals a chain of ownership leading back to TSG Group China, via companies in Denmark and Hong Kong, Dr Andrew concluded.
The Illegal Mining Epidemic
Perhaps most alarming is how these Chinese-backed operations fuel a boom in illegal mining. The concentrator plants, hungry for ore, don’t discriminate between legal and illegal sources. This creates a perverse incentive structure that undermines Nigeria’s attempts to regulate its mining sector.
“The concentrator plant operator is not required to seek proof that the ore came from a mining lease authorized to mine lithium,” Akwanga tells TruthNigeria. This loophole has led to a free-for-all, with devastating consequences for local communities and the environment.
Reports from places such as Shiroro County (Local Government Area) in Niger State paint a grim picture. Armed groups, sometimes linked to terrorist organizations, provide “security” for illegal mining operations. Local farmers and residents who object find themselves facing intimidation, violence, and even death.
In Shiroro county, for instance, armed groups today monitor what happens at the mines. Recall that in August 2024 12 miners were murdered by bandits in Unguwar Magro village in Shiroro county of Niger State. The Nigerian government blamed foreigners for the bloody attack on the minefield.
As TruthNigeria reported in February, powerful Northern politicians who have benefited from illegal mining in their states are sponsoring banditry in Nigeria, according to the Minister for Minerals and good government advocates.
Minister of Solid Minerals Development, Dr. Dele Alake, said that some influential Nigerian politicians who have benefited from illegal mining in their states have threatened his life after he accused illegal miners of engaging in banditry in several parts of Nigeria.
Environmental and Economic Toll
The rush to extract lithium at any cost is leaving deep scars on Nigeria’s landscape. Illegal miners, focused on quick profits, show little regard for environmental protection. At many sites the earth removed is dumped haphazardly, blocking waterways and rendering land useless for agriculture.
“This means there is no reasonable mine plan,” says Akwanga. “The illegal operators leave a trail of environmental destruction with an enormous cost to rehabilitate. With farmland and forest being lost to illegal miners often backed by Chinese companies, there is massive environmental damage and little prospect of it being rehabilitate. In fact, the usefulness of this land is lost to the Nigerian nation for many generations to come,” Akwanga said.
The economic cost is equally staggering. By relying heavily on illegal mining, these operations deprive the Nigerian government of much-needed royalty payments. Akwanga estimates that legitimate, large-scale mining operations across Nigeria could generate billions of dollars in annual royalties for the federal government. Instead, the current system sees much of this potential revenue vanish.
A Global Game of Chess
Nigeria’s lithium dilemma is playing out against a backdrop of global jockeying for control of critical minerals. China, already dominant in processing many of these materials, is moving aggressively to secure supplies from Africa and elsewhere.
This mirrors China’s playbook in other African nations rich in battery metals. In Zimbabwe, Chinese companies have invested more than $1 billion in lithium projects. Yet, as Akwanga points out, “Little of that wealth has flowed into structural improvements in Zimbabwe’s economy.”
The concern is that Nigeria could follow a similar path. While the country has imposed requirements for some local processing before export – mirroring policies in Zimbabwe – the reality is that the concentrate still ends up in China for further refining and manufacturing.
“Is this where Nigeria is heading?” Akwanga asks pointedly.
Multi-billion Dollar Lithium Mine Kickstart in Kaduna
In what may be the game changer in the lithium mining business in Nigeria, Jupiter Lithium Ltd, a UK-based company and US-based ReElement Technologies Corporation have jointly commenced a project for lithium exploitation across 442 square kilometres of lithium-rich terrain in northern Nigeria with an active field in Southern Kaduna. The project dubbed, “Jupiter Critical Minerals Project” is aimed commercializing major lithium deposits in Kaduna State. The project, aside it economic importance to the government so promises to enhance local infrastructure, providing access to potable water, education opportunities and electrification to host communities.
A Crossroads for Nigeria
As Nigeria stands at this critical juncture, the choices it makes will have far-reaching consequences. The potential of its lithium deposits to drive economic growth and position the country as a key player in the green energy transition is undeniable. Yet, the current trajectory risks seeing this opportunity slip away, leaving behind environmental devastation and social upheaval like the country currently has in the Nigerian Delta region due to petroleum pollution of rivers.
The ongoing visit of President Tinubu to Beijing, at the invitation of President Xi, may be consequential. Will Nigeria find a way to harness its mineral wealth for the benefit of its people, or will it become another cautionary tale of resource exploitation?
Akwanga’s warning is clear: “Nigeria among other African nations has decried the colonial era with the wholesale export of Africa’s natural resources with little benefit to the African nations. Are we seeing history repeated with ‘Euro’ replaced by ‘Sino’ or ‘Western’ replaced by ‘Eastern’ plundering of Africa’s natural resources?”
As the world watches, Nigeria navigates this lithium labyrinth. The path it chooses will not only shape its own future but could set a precedent for how African nations manage their critical mineral resources in the face of global demand. In the race for green gold, the stakes couldn’t be higher.
Steven Kefas and Segun Onibiyo cover solid-mineral mining and conflict for Truth Nigeria.
