Nigeria’s Mineral Wealth Is Growing, but Why Are Mining Communities Still Poor?

Nigeria holds major deposits of lithium, gold, tin, tantalum and other minerals needed for batteries, electronics and renewable energy. Foreign investors, especially Chinese firms, have committed billions of dollars to processing projects, while the United States and other countries are seeking partnerships in the sector. Yet the gains remain small compared with the country’s resource potential. Solid minerals contributed less than 1% of GDP, and exports were valued at about ₦354 billion in 2025. Federation revenue rose to more than ₦70 billion, but illegal mining, weak oversight and raw-material exports continue to limit the value retained in Nigeria. The contrast is sharp in many mining areas, particularly in the North-West, where poverty, insecurity, environmental damage and unsafe artisanal mining persist. Estimates of losses to illegal mining differ, but gold smuggling alone has cost the country billions of dollars and has been linked to violent crime in affected states. Higher royalties and local processing requirements could improve public returns. However, the real measure of success is whether mining creates safer jobs, protects farmland and water, and reduces poverty in communities living above Nigeria’s mineral deposits.

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