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Nigeria’s Lithium Rush: How Artisanal Miners Are Cashing In on the ‘New Oil

By DAYO ADESULU

The Rise of Artisanal Lithium Mining in Nigeria

In the heart of Nasarawa State, 31-year-old Abdullahi Ibrahim Danjija chips away at lithium-rich rocks, filling three 50-kilogram bags daily. His earnings—around ₦150,000 ($100) per day—are double Nigeria’s monthly minimum wage, offering a rare economic lifeline in a country where over half the population lives below the poverty line.

Like Danjija, thousands of miners have flocked to Nasarawa and other lithium-rich states, drawn by the promise of prosperity. With global demand for lithium soaring due to its crucial role in electric vehicle batteries and mobile phones, Nigeria is sitting on a potential goldmine.

Unregulated Mining and the Rise of Illegal Lithium Extraction

Despite the potential economic boost, much of Nigeria’s lithium mining remains artisanal, unregulated, and often illegal. At Gidan Kwano, another mining site, families—including women and children—work in secrecy, detonating explosives to access lithium-rich deposits.

Many miners operate without permits, fearing government crackdowns. Even those with licenses often bypass environmental and safety regulations, leading to dangerous working conditions.

China’s Growing Influence in Nigeria’s Lithium Sector

China, the world’s largest consumer of lithium, is heavily involved in Nigeria’s lithium trade. Chinese companies like Avatar and Ganfeng have set up local plants to refine lithium oxide before exporting it to China.

“Most of our buyers are Chinese,” says 43-year-old lithium seller Muhammed. “They either come to our warehouses or we transport the lithium to them.”

However, Nigeria’s government wants to change the status quo. Authorities are pushing for foreign investors to establish processing plants within the country, ensuring value addition before export. Reports even suggest that stringent regulations discouraged billionaire Tesla CEO Elon Musk from investing in Nigeria’s lithium industry.

The Environmental and Social Costs of Lithium Mining

While lithium mining presents economic opportunities, it also poses significant environmental and social challenges. Experts warn of deforestation, soil degradation, and water contamination due to unregulated mining practices.

“The Chinese companies often rush into extraction before proper exploration is done,” says Uba Saidu Malami, president of the Geological Society of Nigeria. “This approach is unsustainable and environmentally damaging.”

Mining-related conflicts are also on the rise. Disputes frequently erupt between communities over resource ownership, while others target mining companies for royalties and reparations. In some cases, armed groups exploit weak government oversight to control illegal mining operations.

What’s Next for Nigeria’s Lithium Industry?

With lithium being dubbed the “new oil,” Nigeria has a rare opportunity to diversify its economy beyond petroleum. However, to maximize benefits, the government must:

  • Enforce stricter regulations to curb illegal mining and environmental damage.
  • Ensure local beneficiation by requiring foreign companies to set up processing plants.
  • Protect artisanal miners by providing them with legal access to mining rights and safer working conditions.
  • Strengthen security to prevent conflicts and criminal exploitation of lithium resources.

As Nigeria navigates its lithium boom, balancing economic growth with sustainability and social equity will be key.

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