Nigeria is betting big on lithium. The government hopes to become a global supplier of the mineral used in EV batteries and shift its economy away from oil. However, early efforts to process lithium domestically are facing significant setbacks.
In central Kaduna State, 19-year-old Musa spends long, backbreaking days in a lithium pit. He earns about 4,000 naira ($2.50) per day—just enough to cover food.
“Sometimes the pits collapse,” he said. “If someone is trapped inside, that’s his end.”
A High-Stakes Opportunity
To benefit from this opportunity, the Nigerian government has launched reforms to formalize the sector. These aim to organize artisanal miners into cooperatives and promote local lithium processing.
Additionally, the country hopes to attract foreign investment, diversifying its economy beyond oil dependence.
Yet Nigeria is not alone. Other African nations—like Zambia and the Democratic Republic of Congo—face similar hurdles: weak regulation, informal mining, and limited infrastructure for value-added processing.
Processing Challenges in Kaduna
In May 2024, Nigeria opened one of its first lithium processing plants in Kangimi village, Kaduna State. The facility, a joint venture between the state and Chinese firm Ming Xin Mineral Separation Nigeria Ltd., was meant to showcase local beneficiation efforts.
At the time, Kaduna Governor Uba Sani announced that the state would hold a 30% stake through the Kaduna Mining Development Company (KMDC). Ming Xin would manage operations, while KMDC would handle security, land access, and community engagement.
However, a year later, the plant is still not fully operational. Residents report no noticeable benefits—no new jobs, no infrastructure improvements, and growing concerns about pollution.
Furthermore, it remains unclear where the site’s lithium is sourced. This has raised fears that it could be fueling the same informal mining system that the government is trying to regulate.
KMDC says the refinery is still in its early phase and awaiting federal approval to begin full operations. However, the company also stated it is not directly involved in the plant’s daily management.
Repeated requests to Ming Xin went unanswered. In contrast, the Chinese Embassy in Abuja said Ming Xin holds valid licenses, respects community agreements, and is committed to environmental protection. The embassy expressed its support for continued cooperation with Nigeria on mining.
More Chinese Investment Incoming
Nigeria’s lithium sector has attracted other Chinese companies as well. Jiuling Lithium Mining Company and Canmax Technologies are investing over $800 million in two new lithium refineries expected to open later this year.
Still, systemic problems persist.
Informal Mining Dominates
Most lithium in Nigeria comes from artisanal and small-scale mining. The supply chain is largely informal, making it hard to trace the metal’s origins.
Miners like Musa dig lithium by hand and sell it in 50kg bags to middlemen—many of whom lack proper licenses. These intermediaries pass the ore on to traders or exporters, creating a fragmented and poorly regulated trade.
Some even use social media platforms to conduct transactions. For example, one Facebook group called “Nigeria Mineral Hub” boasts over 70,000 members and is described as an “open market for mineral trade.” Members post listings for a variety of minerals, including lithium.
This makes oversight by Nigerian authorities extremely difficult.
Outlook
Nigeria’s ambition to become a lithium powerhouse faces a long road. While investor interest is growing, weak regulations, informal mining, and operational delays may undermine the country’s potential to benefit from the global energy transition.
If these challenges persist, Nigeria risks missing out on the lithium boom—just as it missed previous waves of industrial opportunity.
