Nigeria: The Lithium Rush - Nigeria's Bid to Avoid the Resource Curse

What the report says

Nigeria is moving to expand its lithium industry amid rising global demand for the metal used in batteries, while trying to avoid the environmental harm, community disputes and corruption associated with decades of oil production in the Niger Delta. In a report published by The New Humanitarian in collaboration with Premium Times, the focus is on how the country’s lithium belt, which runs from the southwest to the north, could support growth, jobs and rural livelihoods if regulation and oversight improve.

The report says Nigeria has drawn growing interest from foreign mining firms, including investors from China as well as Australia, Britain and the United States. It also notes that the government has banned exports of raw lithium ore to encourage local processing, with Chinese investment in processing plants reported at about $1.3 billion. At the same time, the Natural Resources Governance Institute has warned that stronger community engagement, environmental safeguards, grievance systems and transparency are needed if the sector is to attract responsible investment.

Evidence from Kaduna State and other mining areas suggests that weak enforcement remains a major challenge. Officials quoted in the report say mineral-sector agencies are underfunded and under-resourced. In Kangimi, residents said promises linked to a lithium processing plant had not been fully met, while concerns remain about possible runoff near a reservoir that supplies drinking water to Kaduna city. The story also describes the informal mining economy in villages such as Dangoma, where miners work in unsafe conditions and are vulnerable to exploitation and criminal gangs.

The broader significance is that Nigeria’s lithium boom could become a test of whether the country can turn mineral wealth into inclusive development without repeating the mistakes seen in other extractive sectors.