Nigeria’s emergence as a potential lithium powerhouse is reshaping the global clean-energy narrative—but behind the promise of new wealth lies a growing undercurrent of exploitation, environmental degradation, and geopolitical rivalry.
As demand for lithium surges worldwide, driven by electric vehicles, battery storage, and the broader green-tech transition, the scramble for this critical mineral has intensified. While Australia and Chile dominate global production, China—currently third—is racing to boost its influence. Africa has become a strategic target in that effort.
China’s Expanding Footprint Across Africa’s Lithium Belt
Several African countries hold significant lithium reserves, including Zimbabwe, Mali, and the Democratic Republic of Congo. Nigeria, though a lesser-known player, has recently attracted substantial attention after new lithium discoveries revealed untapped potential.
Eager to reduce dependence on oil and diversify its economy, Nigeria has actively welcomed foreign investors—particularly China. Under Nigeria’s leadership, Chinese firms have rapidly expanded their involvement in the country’s mining sector. According to NewAfrican, over 80% of lithium-related mining projects now rely on Chinese financing and operational control.
At a major mining conference in China, Nigeria’s Minister of Solid Minerals Development highlighted the scale of Chinese investment:
Since Chinese companies such as Canmax Technology, Jiuling Lithium, Avatar New Energy, and Asba began investing in lithium processing, more than $1.3 billion has flowed into the sector—funds that have spurred economic diversification, improved infrastructure, and strengthened local capabilities through joint ventures.
Nigeria’s official stance is clear: it wants mining to serve its people. Authorities are openly courting investors for lithium, gold, lead-zinc, barite, and rare earths, while insisting that mining must generate local jobs and industrial growth.
Nigeria Pushes for Local Processing—And China Moves In
To ensure Nigerians benefit directly from their own mineral wealth, the government introduced a requirement that all mined lithium must be processed domestically before export. The goal is job creation, skills development, and a move away from raw-material dependency.
China has embraced this model—and even expanded beyond it. As China’s ambassador to Nigeria confirmed, plans are advancing to establish electric-vehicle manufacturing in the country. The supply chain is rapidly evolving from mineral extraction to full-scale industrial production.
Chinese manufacturer BYD strengthened its presence through a partnership with CFAO, aiming to expand EV sales and manufacturing in the country. They are joined by Nigerian companies such as:
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Electric Motor Vehicle Company (EMVC) in Abuja, producing tricycles, cars, buses, and agricultural EVs
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Saglev in Lagos, building electric cars for the domestic market
The combination of Chinese investment and Nigerian entrepreneurship is transforming the country into a budding EV and battery hub—powered by local lithium.
The Hidden Cost: Artisanal Mining and the Exploitation of the Poor
Beneath this industrial progress lies a darker reality. In key lithium-producing states—including Nassarawa, Kogi, Kwara, Ekiti, and Cross River—thousands of Nigerians rely on artisanal mining for survival.
With unemployment stubbornly high in rural regions, many families—including children—work in informal mining zones, digging for lithium with minimal tools, safety measures, or oversight. The work is illegal, dangerous, and unregulated, but for many, it is the only means of survival.
A miner in Nassarawa openly admitted to Business-HumanRights:
I know it’s illegal, but I must support myself. We can’t wait for the government to help us.
A local lithium trader highlighted the widespread involvement of children:
Across Nasarawa State, almost all work at the mining sites is illegal. If official companies took over, they’d bar children—but until then, these kids have no other way to feed their families.
While Chinese companies are not directly employing children, analysts emphasize that they benefit indirectly from the informal labor pipeline that feeds the wider lithium supply chain. Activists are calling for international safeguards to prevent foreign investors from exploiting such conditions.
Environmental Damage Grows as Regulation Lags Behind
Beyond labor concerns, artisanal mining is causing severe environmental harm. Unregulated excavation has contaminated water sources, damaged farmland, and scarred landscapes across lithium-rich regions.
A geology consultant warns that without strict government oversight, the consequences will be long-lasting:
To make mining sustainable, Nigeria must enforce low-impact techniques, reuse mining waste, adopt cleaner equipment, rehabilitate mined lands, and shut down illegal operations.
Yet enforcement remains weak. Illegal mining sites continue to grow, partly due to economic desperation and partly because foreign demand for lithium is rising faster than regulatory systems can evolve.
A Crossroads for Nigeria—and for the Global Green Economy
Nigeria stands at a pivotal moment. With its abundant resources and emerging industrial base, it could become a key player in the global energy transition. But without stronger governance and protections for miners, communities, and the environment, the nation risks repeating the destructive patterns seen in other resource-rich regions.
The world’s rush for lithium—central to renewable energy and clean-tech ambitions—cannot come at the expense of human rights or ecological stability. Nigeria’s challenge is to transform its lithium boom into inclusive, responsible, and sustainable development.
The stakes, for both Nigeria and the global green economy, could not be higher.
