Nigeria is emerging as an important source of lithium as the global shift from fossil fuels to renewable energy technologies gains momentum.
Jyia Muhammed, the security chief at an illicit lithium mine tucked away in a hard-to-reach Kwara community called Kakanfu, was relaxing under a shade with his officials when the sound of a motorcycle attracted their attention. Mr Muhammed approached the guest, sparking a tense exchange as he tried to determine the person’s identity.
After about 10 minutes of back-and-forth and scrutiny, Mr Muhammed accepted the story of a PREMIUM TIMES journalist posing as a businessman from Lagos looking to buy lithium, the critical mineral used in batteries for electric vehicles, electronics, and power storage. Then, negotiations ensued to purchase the mineral and secure a safe passage through the numerous security checkpoints on the way to Lagos, where solid minerals stolen from illicit mines like Kakanfu are taken.
“You don’t even need to buy (already extracted lithium) from this place. I have a family land that I can sell to you. It has enough lithium; we just need to get some labourers to work,” Mr Muhammed said, unwittingly providing a window into how community landowners sell resource-rich plots to miners, who shun statutory regulations.
Nigeria is emerging as an important source of lithium as the global shift from fossil fuels to renewable energy technologies increases. However, due to weak regulatory enforcement, neglect, and corruption, proceeds from Nigeria’s mineral wealth often end up in the pockets of artisanal miners enabled by local communities and compromised officials. The federal government recently started cracking down on illegal mining, but that work continues, with the country losing $9 billion annually, according to a parliamentary probe this year.
Over several weeks and visits, PREMIUM TIMES investigated how communities around Kakafu in central Nigeria facilitate illegal mining through various community development levies.
The Kakafu mine is about 10 kilometres from Lade town in Pategi Local Government Area. Proceeds from the mine have helped build a massive camp, which serves as both a residential and an economic hub – a makeshift city in the jungle.
“Two years ago, there were over 100 sex workers from different parts of Nigeria living in this camp,” Hassan Yako, a former labourer at the mine, said as we drove through the camp, the houses built with raffia leaves and bamboo trees.
The roadside to the mine presents a curious sight – rows of hundreds of white sacks brimming with lithium rock. The bags, now battered by the elements, have been there for quite some time, much like the abandoned homes in the nearby camp.
Negotiation to Buy Lithium
Illicit mining activity goes on with impunity in Kakanfu and its surrounding areas. Formal government institutions are far removed, so cutting deals is easy. Over the phone, PREMIUM TIMES contacted a Lade community member named Abdul Abbas, who agreed to sell lithium and ensure safe passage from Lade to Ogbomosho for a fee of N200,000.
After a brief phone discussion, Mr Abbas agreed to meet the reporter in Pategi, 30 kilometres from Lade. At a mechanic workshop on the town’s outskirts, he agreed to sell a tonne of lithium for N85,000, depending on quality, and facilitate transport from Kakafu to Lade for N120,000 per trip. From Lade, trailers could haul the lithium to Lagos.
Mr Abbas was precise in his promises. He offered a free pass between Lade and Ogbomoso in Oyo State, leaving buyers to figure out the journey from Ogbomoso to Lagos. When asked about the EFCC and other agencies arresting vehicles carrying illicitly bought lithium, he reassured of safe passage.
“We have security covered from our place to Ogbomoso. With N200,000, you will have a smooth passage,” he said in Yoruba.
He added that the chairman of the community development association was aware of the transaction and would provide the needed support.
To support his claims, Mr Abbas called the chairman, who sent a copy of a receipt via WhatsApp and agreed to reduce the development and youth levies from N500,000 to N350,000. Bribing police and other security operatives from Lade to Ogbomoso would cost an additional N200,000, the chairman said, which was corroborated by lorry drivers leaving the resource-rich communities.
The reduced levy reflects the declining demand for lithium in the community, which has caused a slash in revenue. An ex-miner, speaking anonymously, said the downturn had forced many to return to farming, which they had abandoned for quick mining profits.
Mr Abbas was not the only one who could facilitate a deal. Mr Muhammed, the security chief, also offered to sell a piece of his lithium-rich community land. But unlike Mr Muhammed, Mr Abbas could immediately produce transaction documents.
Mr Muhammed and his officials took PREMIUM TIMES around the Kakanfu mine, pointing out recent excavations and explaining how the material is sold and smuggled past security operatives.
Lithium stones were loaded into sacks and transported by buses instead of trailers to evade detection.
“If you can get your truck into Kakafu, we will load the lithium here. We can give you N60,000 per tonne. Then you will pay N100,000, which we’ll share with the traditional ruler, local government officials, and the vigilante group at the camp entrance,” he said.
Lade, about seven kilometres away, is the main gateway and has become a hub for lithium trading. Former miners said outsiders are not allowed to buy directly from the mine; they must purchase from a designated point called the “table” in Lade.
Each trailer loading lithium pays a N500,000 levy to the Lade Development Association.
However, demand for lithium in Lade has plummeted since December, mirroring global trends. By February 2024, a tonne was selling for $20,782, down from $81,360 in November 2022. Besides the worldwide downturn, the Nigerian government’s crackdown on illegal mining has also contributed to the decline.
Loopholes in Security and Governance
The Kwara situation highlights the broader reality of Nigeria’s solid mineral sector, where communities work in cahoots with artisanal miners, thereby denying the government revenues. This mirrors the resource control debates in the oil-rich Niger Delta.
While the Nigerian Constitution says that all underground resources belong to the federation, the solid mineral sector often operates outside this law.
In Zamfara State, for instance, illegal gold mining is rampant, with minimal contributions to the federation account. The sector remains unstructured, with experts linking illegal mining to terror financing. Nigeria’s Minister of Solid Minerals, Dele Alake, has accused politically exposed persons of involvement in illegal mining but has not named or arrested anyone.
The military has also pointed fingers at traditional rulers as key players in the illegal trade. However, field observations suggest that the problem extends to security agencies. PREMIUM TIMES counted over ten security checkpoints between Ilorin and Lade, which is about 163km, manned by police, the Nigerian Army, vigilantes, and youth groups who extort money from motorists.
The federal government has made several efforts to formalise artisanal mining through a cooperative society model and even set a registration deadline. However, the weak governance structure has made this difficult.
In July, the minister announced the government’s plans to start collecting taxes and royalties from registered artisanal miners to increase revenue. He, however, admitted that some companies are entering mining sites to “illegally mine.”
Mine marshals from the Nigeria Security and Civil Defence Corps, tasked with policing major mines, can also be compromised. Mr Abbas and his associates in Lade were confident they could bribe their way through this security setup. In subsequent phone negotiations, the chairman of the Lade Development Association said he would travel to Ilorin to negotiate with the EFCC for smooth passage and secure approval from key community leaders.
“We are working with the sub-nationals to address the problem in this sector,” said Segun Tomori, an aide to the solid minerals minister, in an interview. He noted that the Mining Act of 2007 is being amended to create a proper structure for host communities, aiming to reduce illegal mining incentives.
Some states have banned traditional rulers from issuing mining consent letters due to concerns over collusion.
EFCC’s spokesperson, Dele Oyewale, said the agency was aware of the collusion and has summoned some community leaders for questioning. “Some have even been remanded for interrogation,” he said in a phone interview last month. “We are tracking them. Even those you spoke with may not know when they will be arrested. We have identified some of them.”
Security operatives have made recent arrests, including Nigerians and Chinese nationals, and a number of them have been prosecuted. However, communities still find ways to help artisanal miners steal minerals, as this PREMIUM TIMES investigation shows.
While the government is optimistic about curbing the illicit role of community leaders in illegal mining, the economic and environmental impacts remain evident. In Lade, heaps of mined lithium litter the community, waiting for buyers. Exhausted mines are left unrestored against the requirements of mining and environmental regulations.
Illegal mining activities may be keeping away structured, organised private-sector investments. Habeeb Jaiyeola, an energy expert at PwC, an audit and research firm, said the multiple layers of levies imposed by the communities might be a disincentive to licit operators, who may consider the impact of these illegal levies on their operational costs.
Still, Mr Jaiyeola expressed optimism about the mining sector.
“Right now, the sector is becoming more structured. The government is taking an interest in the sector. I know that in Nasarawa State, the state government is partnering with a private firm to set up a lithium processing factory. As the sector becomes more structured, those who previously operated unstructured setups may be edged out,” said Mr Jaiyeola.
“People are structuring their operations and buying from suppliers who follow due process. These players may not want to engage with those merely packing the lithium in sacks.”
The lithium mined in communities like Lade ultimately ends up in countries like South Korea, China, Japan, the US, and Belgium, where they are processed into highly sought-after lithium-ion batteries. Some of these batteries are then shipped back to Nigeria, where Nigerians must pay a premium for car batteries, phone components, inverter system batteries and other future energy devices.
Although Nasawara State, also in central Nigeria, recently worked with private investors to build a lithium battery processing factory, the miners in Lade are unconcerned. They only care about selling their illegally mined mineral to any willing buyer.
This story was supported by the Centre for Journalism Innovation and Development under its Just Energy Transition Minerals Challenge Project.