Nigeria’s natural wealth stretches far beneath its soil. With over 44 types of commercially viable minerals, including gold, granite, and the increasingly sought-after lithium, the country holds an enviable reserve of resources. Yet the contribution of the solid mineral sector to national income remains dismally low, hovering at less than 1.5 percent of the Gross Domestic Product. In contrast, oil and gas continue to dominate revenue despite their vulnerability to global price volatility and environmental concerns. This disparity points not to a lack of potential but to a range of deep-rooted governance and regulatory challenges.
Gold has long been associated with Nigeria’s mineral economy, especially in northern states like Zamfara and Osun. Granite, widely extracted in states such as Ogun, powers the country’s booming construction industry. More recently, lithium has attracted global attention, thanks to its importance in battery manufacturing and clean energy technologies. Nigeria’s lithium reserves, particularly in Nasarawa and Kogi, could position the country as a critical player in the global energy transition. However, the management of these resources falls short of what is needed to harness their full economic value.
The existing legal framework for solid mineral development is anchored in the Minerals and Mining Act of 2007. The Federal Ministry of Solid Minerals Development, the Nigerian Geological Survey Agency, and the Mining Cadastre Office are the central institutions meant to manage the sector. Yet despite these structures, the system remains inefficient. Licensing is fraught with delays, unclear procedures, and allegations of favoritism. Many licenses are issued to inactive entities that do not develop the sites but merely hold them, waiting for prices to rise or for foreign interests to buy them out.
One of the core issues is the overlapping jurisdiction between the federal government, which holds legal control over mineral resources, and state and local governments, which control land. This has led to frequent conflicts, with some state authorities imposing taxes and controls that contradict federal policies. Investors are left navigating multiple layers of authority without clear guidelines, making the environment unpredictable and unattractive for serious investment.
Another significant challenge lies in the absence of reliable geological data. Without up-to-date maps and mineral surveys, potential investors are hesitant to commit resources. The lack of information also opens the door to speculative activity rather than genuine exploration and mining.
Environmental oversight is another weak point. Artisanal and small-scale mining, which involves hundreds of thousands of Nigerians, often proceeds without environmental assessments or community consent. In the case of gold mining in Zamfara, this has had tragic consequences. In 2010, lead poisoning from informal mining operations killed hundreds of children. Despite nationwide attention, similar unsafe practices continue, particularly where regulatory presence is thin or nonexistent.
Granite mining, especially in densely populated areas, has also triggered environmental concerns. Unregulated blasting, noise pollution, and land degradation have led to disputes between companies and host communities. In many instances, promises of community development or compensation are unfulfilled, leaving residents frustrated and disenfranchised.
Lithium, though relatively new to the conversation, is already showing signs of following the same troubled path. International buyers are increasingly interested in Nigeria’s lithium, yet mining operations are emerging without proper regulatory frameworks or benefit-sharing mechanisms. Reports suggest that raw lithium is being exported with little value addition, a trend that may repeat the mistakes seen in the oil sector, where crude exports failed to create robust domestic refining capacity or meaningful employment.
To move the sector forward, reforms must prioritize clarity and accountability. The relationship between federal and state governments needs to be better coordinated, with roles clearly defined and streamlined to avoid duplication and conflict. Licensing processes should be transparent, merit-based, and designed to encourage genuine investment. Geological data collection and dissemination must be upgraded and made publicly accessible to attract credible interest.
Environmental standards must also be enforced rigorously. All mining operations should be subject to community development agreements that are legally binding and monitored independently. Artisanal miners, who play a vital economic role, should be formally recognized, organized into cooperatives, and trained on safe and sustainable practices. Their integration into the formal economy can help reduce illegal mining and improve working conditions.
The emergence of lithium presents Nigeria with a new opportunity to get things right. If properly managed, lithium could place the country at the heart of the global clean energy supply chain. However, this requires political will, strategic planning, and institutional discipline qualities that have often been in short supply in the sector’s past.
Nigeria’s mineral wealth should be a blessing, not a burden. Gold, granite, and lithium are more than just commodities; they are a test of leadership and governance. With sound policies and a commitment to reform, the country can transform its buried treasures into engines of growth and development. The time to act is now, before yet another opportunity slips through our fingers.
