Nigeria’s Untapped Lithium Reserves Draw Foreign Interest, Fuel Economic Hopes

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Foreign investors are increasingly setting their sights on Nigeria’s untapped lithium reserves as global demand for the critical mineral used in electric batteries and mobile phones continues to soar. The central state of Nasarawa has become the epicenter of artisanal lithium mining, where miners like Abdullahi Ibrahim Danjija see a golden opportunity despite the risks and challenges.

Danijja, a 31-year-old miner from Kano, moved to Gidan Kwano three years ago, hoping to capitalize on the booming lithium industry. He chisels away at rocks each day, managing to fill three 50-kilogram bags, earning around N150,000 ($100) daily—more than double Nigeria’s monthly minimum wage.

Lithium mining in Nasarawa is predominantly artisanal and informal, with families—including women and children—taking part in mining activities. At some sites, miners operate without permits or adherence to safety and environmental regulations. Along the main road, makeshift warehouses serve as sorting and cleaning centers for the mined lithium before it is sold to buyers, primarily Chinese companies.

“We are very happy,” said lithium seller Matthew Danbala. “Since lithium arrived here, everybody, including children and women, is benefiting.” Miners often sell their finds to Chinese buyers, who either visit the warehouses or arrange to receive the rocks at their own facilities.

China, the world’s leading consumer of lithium, has established a strong presence in Nigeria’s lithium sector. Companies like Avatar and Ganfeng have built processing plants in Nigeria, transforming raw lithium into lithium oxide for export to China. However, concerns have been raised about the environmental and sustainability practices of some Chinese operators, with experts calling for better regulation and more exploration to assess the country’s lithium reserves accurately.

“There is a need for detailed exploration work to ascertain the reserves of lithium in those areas,” said Uba Saidu Malami, president of the Geological Society of Nigeria. He described some foreign operators as “cowboys” due to their rapid and unregulated expansion.

The Nigerian government aims to attract more foreign investment while encouraging companies to set up local processing plants to boost the country’s economy. In 2024, Nigeria and France signed a memorandum of understanding to develop mining projects, including lithium. However, most foreign investments remain from Chinese firms.

Artisanal mining has also sparked conflicts over resource ownership and royalty. Disputes between local communities and mining companies, as well as attacks on expatriates have become recurring issues. Organized armed groups are known to exploit the absence of strong government oversight to extract resources illegally.

Despite these challenges, miners like Danjija continue their work, undeterred by the dangers, including landslides during the rainy season and frequent explosions from dynamite blasting.

As global demand for lithium grows, Nigeria’s reserves present a significant opportunity for economic growth, but the path forward will require improved regulation, environmental protection, and local community engagement.

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