Nigeria’s burgeoning lithium industry presents a significant opportunity for economic diversification as the world shifts towards electric vehicles (EVs) and renewable energy storage. Known as “white gold,” lithium is crucial for the global energy transition, and for a country traditionally dependent on oil and gas, this emerging sector could create jobs and attract foreign investment.
Major players are already making moves in Nigeria’s lithium market. Companies like Avatar and Ganfeng Limited are establishing lithium processing facilities in Nasarawa State, while Jupiter Lithium Limited and ReElement Technologies have formed a joint venture to target deposits in Kaduna State. These investments highlight Nigeria’s growing appeal as a source of this valuable resource.
The risk of mismanagement
However, with opportunity comes significant risk. Nigeria’s history of managing natural resources is marked by environmental and social challenges. The tragic lead poisoning disaster in Zamfara State in 2010 serves as a stark reminder of the consequences of poorly regulated mining activities, where illegal gold mining led to the deaths of hundreds of children.
The environmental risks associated with lithium mining are considerable. While Nigeria’s lithium deposits are primarily hard rock, which uses less water than brine extraction, the process still generates waste rock, chemical by-products, and air pollutants. Without stringent regulations, these by-products could result in water contamination, land degradation, and serious public health issues.
Global examples of mismanaged lithium extraction should serve as cautionary tales. In regions where brine extraction is prevalent, the process can deplete scarce water resources and release toxic metals into the environment. Although Nigeria’s hard rock mining may not face the same water depletion risks, land degradation and air pollution remain pressing concerns.
Monitoring investments
The projects by Avatar and Ganfeng in Nasarawa, along with the Jupiter Critical Minerals Project in Kaduna, are positive steps toward leveraging Nigeria’s lithium reserves. However, these ventures require close monitoring. The Nigerian government has introduced measures to promote local processing and protect mineral assets, yet its enforcement record leaves much to be desired. Illegal mining activities have flourished, particularly in rural areas, leading to significant environmental damage, as seen in Kwara State, where unlicensed miners have devastated farmlands and polluted waterways.
The community of Bani in Kwara, once thriving, has been ravaged by illegal lithium mining. Farmers have lost their livelihoods, and children have abandoned school to participate in the mining trade. Despite government efforts to crack down on illegal operations, enforcement remains inadequate in these remote areas.
Prioritizing environmental protection
For Nigeria to fully capitalize on its lithium potential, it must prioritize environmental protection and ensure mining operations adhere to international standards. Collaborating with mining companies to implement Environmental, Social and Governance (ESG) frameworks is crucial for sustainable and socially responsible operations. This includes managing waste effectively, limiting air and water pollution and safeguarding the health of local communities.
The stakes are high. Lithium could provide Nigeria with the revenue and economic diversification it desperately needs. However, if the country repeats past mistakes—failing to regulate mining activities, protect the environment, and ensure the well-being of its citizens—the consequences could be dire.
Nigeria’s lithium rush is a chance for progress, but it must be approached responsibly. The allure of white gold should not overshadow the environmental and social costs associated with its extraction. Robust regulation and oversight are essential for balancing economic growth with environmental stewardship.
Only through responsible management can Nigeria ensure that its lithium wealth benefits both current and future generations.
