Nigeria’s vast lithium reserves are attracting significant attention from foreign investors, particularly Chinese companies, as global demand surges.
Lithium, a key component in electric vehicle batteries and mobile phones, has become a focal point for Nigeria’s mining sector, often referred to as the “new oil” in the country. With artisanal miners like Abdullahi Ibrahim Danjija earning up to N150,000 ($100) daily in Nasarawa State, the economic potential of lithium is undeniable. However, the sector remains largely informal, with many miners operating without permits or adherence to safety and environmental standards.
China, the world’s largest lithium refiner and consumer, has been a dominant player in Nigeria’s lithium market. Companies like Avatar and Ganfeng have established local processing plants to convert raw lithium into lithium oxide before exporting it to China. Despite this, experts like Uba Saidu Malami, president of the Geological Society of Nigeria, warn that the lack of detailed exploration and regulation poses risks. “The Chinese are cowboys when it comes to mining,” Malami said, emphasizing the need for sustainable practices and environmental sensitivity.
The Nigerian government is actively seeking to formalize the sector and attract foreign investment.
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Recent efforts include signing a memorandum of understanding with France for mining projects and proposing requirements for foreign investors to establish local processing plants. However, challenges such as illegal mining, environmental degradation, and community conflicts persist. Analyst Charles Asiegbu highlights the risks of disputes between communities, exploration companies, and even armed groups exploiting the lack of government oversight.
For investors, Nigeria’s lithium reserves present a lucrative opportunity, especially as the global transition to renewable energy accelerates. However, success will depend on improved regulation, sustainable practices, and collaboration with local communities.
