Researchers to hold policy dialogue on just transition and Nigeria’s critical minerals boom – EnviroNews

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For global industries racing towards electric vehicles, renewable energy storage and advanced technologies, lithium is no longer simply another mineral. It is a strategic resource at the heart of the global energy transition.

For Nigeria, the growing demand for lithium and other critical minerals offers an opportunity to diversify the economy beyond oil, attract investment, create jobs and establish a domestic industrial base; yet in the communities where these minerals are being extracted, the promise of prosperity can look very different.

A British Academy-funded project, “The Political Economy of Just Transition for and in Africa,”examines critical mineral extraction in Nigeria, with Nasarawa State serving as one of the project’s major fieldwork sites. The researchers interviewed government officials, traditional and community leaders, mining companies, civil society organisations, academics, women, young people and artisanal miners. They also visited mining sites to examine environmental conditions, safety, security and infrastructure.

Their findings point to significant concerns around governance, accountability and inclusion.

At the centre of the problem is an apparent overlap between federal authority over mineral resources and state responsibility for land administration. From the findings, this intersection has created uncertainty over who exercises authority at different stages of mining activity.

In Nasarawa, researchers reported that the state government has assumed a prominent role in mining-related activities, including engagement with mining companies and land matters.

One confidential respondent alleged that the governor personally invited some Chinese mining companies and approved operations outside federal procedures. The allegation could not be independently verified.

The question becomes even more critical when considering how the benefits of mining are distributed. Community Development Agreements (CDAs) are designed to ensure that host communities derive tangible benefits from mineral extraction. However, field research indicates that the mere existence of a CDA does not necessarily guarantee the transparent, accountable, or equitable distribution of these benefits. For many residents, therefore, the issue is not necessarily whether mining should take place. It is who benefits from it.

Environmental concerns add another layer to the debate. Researchers reported that farmland had been converted into open mining pits and that streams used by residents had been affected by chemicals associated with mining activities. Abandoned mica pits were also observed with unstable edges and inadequate safety barriers.

The study also raises concerns about transparency at some Chinese-operated mining sites. Researchers described some locations as heavily secured compounds, with walls, fencing, security towers and armed guards. They reported restricted access and reluctance by some companies to disclose information about technology, geological data and operations.

For residents living close to some of Nigeria’s most valuable mineral deposits, the wealth beneath their feet has not always translated into the basic services above ground.

This is the central contradiction confronting Nigeria’s critical-minerals boom: while the country seeks to position itself as a major beneficiary of the global energy transition, some of the communities hosting these resources are still waiting to see meaningful development.

Nigeria has been working for years to transform mining from a relatively underdeveloped sector into a significant contributor to economic growth. The Nigerian Minerals and Mining Act 2007 places mineral resources under federal government control and requires mining lease holders to enter into Community Development Agreements with host communities before commencing development activities. These agreements are intended to provide social and economic benefits, including employment, training, education, healthcare, water and infrastructure.

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The 2016 Mining Roadmap strengthened this ambition by placing greater emphasis on domestic industrialisation, value addition and the development of a competitive mining value chain.

The current administration has continued along this path. In 2025, the Federal Government reported that mining-sector reforms had attracted more than $800 million in processing projects, while solid-minerals revenue increased from about ₦6 billion in 2023 to more than ₦38 billion in 2024. The government has also emphasised tighter licensing and local value addition.

In July 2026, the Federal Government commissioned what it described as Nigeria’s largest lithium-processing plant in Nasarawa, reinforcing its push to process more minerals domestically.

However, local processing is only one part of the challenge. The bigger question is whether Nigeria can capture greater value across the entire mining value chain, from exploration and responsible extraction to processing, refining, manufacturing, and advanced battery technologies.

This requires a just and equitable approach that promotes locally made products using lithium, while ensuring that mining host communities meaningfully benefit through jobs, infrastructure, economic opportunities, and sustainable development.

The policy dialogue, scheduled to take place on 7 October in Abuja, Nigeria’s capital city, will bring together community representatives from various communities affected by the adverse impacts of mining activities, alongside government agencies, civil society organisations, and regulatory bodies within the mining sector.

The dialogue will provide a platform for stakeholders to critically examine and discuss the key challenges and emerging issues threatening the sustainable development of Nigeria’s mining sector. It will foster constructive engagement among stakeholders and facilitate the development of practical recommendations for improving mining governance, strengthening regulatory oversight, and promoting responsible and sustainable mining practices.

At the conclusion of the dialogue, participants will develop and adopt a communiqué outlining key recommendations and strategic actions for advancing Nigeria’s mining sector. The communiqué will advocate for a mining framework that goes beyond the extraction of raw minerals to promote local processing, value addition, and the production of finished products for the Nigerian market at affordable and competitive prices.

Ultimately, the dialogue seeks to contribute to the development of a mining sector that promotes economic growth and local value addition while safeguarding the rights, livelihoods, environment, and long-term development interests of mining host communities.

By Professor Emeka Daniel Oruonye