Nigeria’s Lithium Boom: A Blessing or a Curse for Local Communities?

The Kebbi State Government, under the leadership of Nasir Idris, recently announced that some Chinese investors will set up a lithium processing factory in northwestern Nigeria. Speaking during the 2025 Rigata Annual Cultural Festival in Yauri, Governor Idris said the investment would boost the Kebbi State’s economy and also create numerous employment opportunities for local residents.

“Our recent visit to China, aimed at attracting foreign investors, resulted in the signing of an agreement with reputable investors worth $200 million, equivalent to N330 billion,” he said.

The project is facilitated by an indigenous mining company, Three Crown Mines Ltd., which entered into an agreement with Canmax Technologies from China to invest $200 million in lithium mining operations in the state. Under the agreement with three crown mines, Canmax will hold an 85 per cent stake, while the local company will control the 15 per cent stake in the joint venture.

While the planned lithium processing plants would make the northwestern state a significant player in Nigeria’s mineral sector, experts have also raised concerns on its drawbacks.

“You cannot have lithium mining and other related activities without some devastating consequences,” Dr. Umar Wali, an expert in land information systems at the Abubakar Tafawa Balewa University in Bauchi, told HumAngle.

“It is not surprising that China is all over the place looking for lithium. This is because it is an industrial giant in the manufacturing of electric batteries,” Dr. Wali added. 

Nigeria’s growing lithium industry

Nigeria, and by extension, Africa, has become a  lithium investment destination for Chinese companies like Sinomine Resource Group, Chengxin Lithium, and Yahua Group. Propelled by the global demand for this essential component in renewable energy solutions, Nigeria is attracting significant foreign direct investments.

The influx of foreign capital is crucial in enhancing infrastructural development, improving local businesses, and elevating the overall standard of living in both the state and the country by extension. With lithium, an essential component for batteries in electric vehicles (EVs) and renewable energy systems, being highly sought after as the world transitions towards cleaner energy, Nigeria can benefit from investments.

Globally, China has maintained an unflinching focus on the green energy revolution and has continued to invest in renewable energy anywhere it can lay its hands on that key ingredient: lithium. 

Lithium deposits have been identified in several Nigerian states, including Nasarawa, Kogi, Kwara, Ekiti, and Kebbi, among others. The Nigerian government has recognised the potential of these reserves and is actively promoting lithium investment activities.

One notable example of this investment is the partnership between Canmax and Avatar New Energy Materials Co. Ltd., a Chinese firm, in setting up a lithium processing plant in Nasarawa State, North-central.

Lessons from unregulated practices

The Minerals and Mining Act of 2007 outlines the legal framework for lithium mining in Nigeria. The act vests ownership of all mineral resources in the Federal Government under the supervision of the Ministry of Mines and Steel Development. The ministry carry out the issuance of exploration licenses, mining leases, quarry leases, and small-scale mining leases.

Despite these regulations, the country has persistently witnessed a disregard for the its regulatory frameworks. In fact, illegal lithium mining across the country has been reported to cause several environmental and social concerns, including child labour.

This means a significant portion of Nigeria’s lithium mining operates outside legal frameworks, leading to unregulated and unsafe practices. In some parts of the country, numerous mines function without official oversight, employing rudimentary methods that disregard environmental and safety standards.

This non-compliance with regulations and oversight has resulted in unsafe practices that impact both the environment and local communities. But to prevent similar outcomes in Kebbi State, Dr. Wali suggests the implementation of a robust regulatory framework. 

“Environmentally, lithium is associated with water contamination and the depletion of water sources because water is used to purify what is mined, and this could lead to land degradation where you have soil pollution and erosion, thereby reducing the productive capacity of the land. Incidentally, we are turning fertile lands into barren ones.

“Scientific exploration is required for lithium and any other mineral. But what we have here in Nigeria is mostly artisanal mining activities [controlled by foreign companies], which tend to be unorganised,” he said.

A potential for conflict?

The discovery of substantial mineral reserves has sparked a rush for control over these valuable resources, raising concerns about potential conflicts and insecurity. In 2023, the Kebbi State government announced the suspension of mining activities in the state, citing insecurity. Yakubu Bala-Tafida, the Secretary to the State Government, revealed that the decision is a result of heightened security challenges in mining sites in some host communities of the state.

Though illegal mining activities have been reported to escalate local conflicts in Nigeria, Dr. Wali says even legal mining investment could also lead to conflicts.

“Incidentally, we can then begin to look at the possibility of land conflict because we now have agricultural land being transformed into mining land. This may also usher in some sort of conflict because increasing value of land is generally associated with conflict, as we have seen in Zamfara over gold,” the expert said.

For experts like Dr. Wali, the proposed lithium processing factory in Kebbi presents a significant opportunity for economic advancement and integration into the global mineral economy. However, balancing these benefits with environmental stewardship and social responsibility is paramount.

He noted that by tapping into this demand, the state and Nigeria, by extension, could diversify their export portfolio, reduce dependence on traditional oil revenues, and strengthen their position in the global mineral market.

“For this investment to be fully beneficial, adopting sustainable and responsible mining practices is crucial. These include utilising technologies that minimise environmental footprints, implementing recycling measures to manage waste effectively, and continuously monitoring environmental parameters to detect and mitigate adverse impacts promptly.”