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Foreign Investors Target Nigeria’s Lithium Reserves Amidst Growing Demand

Global demand for lithium has attracted foreign investors to Nigeria, particularly Chinese companies. Artisanal mining provides income for many in impoverished communities, although much of the activity is informal and sometimes illegal. The Nigerian government aims to regulate this sector and promote domestic processing, amidst concerns regarding environmental and communal conflicts.

Foreign interest in Nigeria’s lithium reserves is growing due to the surging global demand for lithium, a vital component in electric batteries and mobile phones. At an artisanal mine in Nasarawa state, miner Abdullahi Ibrahim Danjija, having relocated from Kano, demonstrates the lucrative potential of lithium mining by filling three bags of raw material worth N150,000. Artisanal mining in Nigeria often operates informally, with miners bypassing safety protocols and environmental regulations, yet it serves as an income source for many living below the poverty line.

Many miners lack proper permits, as highlighted by the reluctance of one group to allow journalists into their mining site. Despite the illegal nature of much of this mining activity, families benefit from lithium extraction, which has transformed local economies. Children also participate in this informal economy, as they assist in mining operations, benefiting from the demand for lithium.

China dominates the global lithium market, refining and consuming substantial amounts of this precious metal, while Nigeria aims to tap into this demand. The Nigerian government actively seeks foreign investments to stimulate its mining sector, viewing lithium as the country’s “new oil.” While it is common for officials to combat illegal mining, there remains a persistent influx of miners hopeful for wealth from lithium.

Foreign investment has largely come from Chinese firms such as Avatar and Ganfeng, which have established local processing plants. The Nigerian government hopes to enforce regulations that require foreign investors to process lithium domestically, a move that could deter some high-profile investors. A memorandum of understanding between Nigeria and France in 2024 indicates a collaborative approach to lithium mining.

The Geological Society of Nigeria emphasizes the necessity for thorough exploration to determine lithium reserves. Concerns were raised regarding Chinese mining practices, which some perceive as reckless due to inadequate exploration and environmental considerations. Additionally, the artisanal mining landscape poses risks for local conflict, with tensions arising over resource ownership and compensation issues.

Artisanal mining can lead to disputes among communities, particularly related to resource allocation and rights. Reports detail instances of violence and abductions linked to ill-defined mining claims or disagreements with mining companies. Despite hazards such as landslides during the rainy season, miners like Danjija continue their work, while nearby communities carry out their agricultural activities without heed to the mining operations.

Nigeria possesses substantial lithium reserves that have garnered international attention, particularly from Chinese companies eager to exploit these resources. The country’s informal and often illegal mining sector plays a crucial role in local economies but raises concerns regarding regulation, environmental impact, and community relations. This landscape is characterized by artisanal mining, where individuals and families engage in mining without formal recognition or permits, risking legal repercussions while seeking economic opportunities.

The increasing demand for lithium presents both opportunities and challenges for Nigeria. While foreign investment, particularly from Chinese firms, bolsters the local mining economy, issues surrounding illegal mining, environmental degradation, and community conflict must be addressed. Implementing regulatory measures and establishing processing plants within Nigeria could allow for sustainable growth in this emerging sector, ensuring that communities benefit from their natural resources.

Original Source: punchng.com

Lila Chaudhury

Lila Chaudhury is a seasoned journalist with over a decade of experience in international reporting. Born and raised in Mumbai, she obtained her degree in Journalism from the University of Delhi. Her career began at a local newspaper where she quickly developed a reputation for her incisive analysis and compelling storytelling. Lila has worked with various global news organizations and has reported from conflict zones and emerging democracies, earning accolades for her brave coverage and dedication to truth.

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