Introduction
The global push for a net-zero future is driving a seismic shift in the world economy. As nations race to decarbonize, the new high-stakes commodity is no longer oil, but a host of critical minerals essential for daily lives including electric vehicle batteries to wind turbines and solar panels. This new demand places Africa, a continent blessed with vast mineral wealth at a pivotal crossroad. While Nigeria with its vast, untapped mineral reserves, stands at a pivotal crossroads, she faces the challenge of leveraging this new geological fortune while avoiding the pitfalls of a “Green Resource Curse,” a modern iteration of the paradox that has historically plagued its oil-rich economy. This paper outlines a strategic, policy-driven approach that can enable Nigeria to build a transparent, equitable, and sustainable mining sector, positioning Nigeria not just as a country blessed with raw materials, but as a leader in Africa’s just energy transition.
Conceptual Clarifications
Minerals
Minerals are ‘’any substance whether in solid, liquid or gaseous form occurring in or on earth, formed by or subjected to geographical processes, including occurrences or deposits of rocks, coal, bed gasses, tar sands, any substance which the Minster may by order specify to be mineral’’[1].
Critical Minerals
‘’Critical’’, as it relates to minerals, is a designation made by governments and industries based on economic strategic and supply chain considerations rather than a purely legal definition of the substance itself.[2] Given the above, critical minerals are those mineral raw materials that are essential for the economy, particularly for strategic sectors such as clean energy technologies and whose supply is subject to high risk of disruption due to factors like concentrated production or geopolitical instability.[3] Critical minerals vary from country to country. Critical minerals in Nigeria include lithium, gold and barite. However, in other Africa countries, critical minerals vary. For instance, in the Democratic Republic of Congo, critical minerals are cobalt and copper; in South Africa, Platinum Group Metals; Zambia, copper; Mozambique, graphite reserves. The policy for critical mineral in each country largely depends on the definition of critical mineral in that specific country, its priorities and context. The International Energy Agency (IEA) provides a similar definition, stating that critical minerals are those “essential for a range of today’s energy technologies” and whose “strategic importance has also increased” due to growing demand and supply concentration[4].
The Niger Delta Paradox
Nigeria’s history with its abundant natural resources provides a powerful precedent. While the Niger Delta region of Nigeria with its immense oil and gas reserves, became the engine of the national economy for decades, yet this wealth failed to translate into widespread prosperity for the country. The “Resource Curse” became a tangible reality marked by a series of devastating consequences which include:
- Economic Instability: An overreliance on volatile oil prices led to a boom-and-bust economy, hindering the growth of other vital sectors like agriculture and manufacturing.
- Widespread Corruption: Government revenues from oil became a source of political patronage and corruption, leading to a lack of accountability, transparency and public trust.
- Environmental Degradation: Decades of oil spills and gas flaring have left a legacy of environmental damage, destroying ecosystems and livelihoods.
- Social Conflict: The inequitable distribution of oil wealth fuelled social unrest and armed conflict, particularly in the oil-producing communities.
The new demand for critical minerals risks repeating this tragic pattern. A rush to secure supply could lead to the exploitation of resources with minimal benefit to the local population, further entrenching economic dependence and exacerbating environmental damage. For Nigeria to avoid this, it must look at this new opportunity through a different, more enlightened lens. There have been recent actions taken by the Federal Government to reform its solid minerals sector, shifting from an under-regulated, informal industry to a more structured and modern one. These efforts are aimed at preventing a “Green Resource Curse” by focusing on value addition and attracting large-scale, formal investment which include.
i. There has been a key policy shift in the move away from exporting raw ore. The Minister of Solid Minerals Development, Dr. Dele Alake has announced major investments, with over $1.4 billion in planned projects for lithium and rare earth processing facilities. This includes plans for what is being called Africa’s largest rare earth processing facility in Nasarawa State. This policy is already showing results, with over $800 million in processing investments secured in 2024 alone, demonstrating a clear commitment to in-country beneficiation before export[5].
ii. There is a strong legislative push to strengthen the Nigerian Minerals and Mining Act. The House of Representatives is currently reviewing 12 bills to address outdated laws, improve institutional frameworks, attract investment and ensure local community benefits. Dr. Dele Alake has also established a dedicated security task force, the “Mining Marshals,” to combat illegal mining and mineral smuggling, which have long been major sources of revenue loss and conflict[6].
iii.To de-risk the sector for investors, the Nigerian Geological Survey Agency has launched a Mineral Resources Decision Support System to provide investors with easy access to geological and policy data[7]. This effort, along with the strengthening of the Mining Cadastre Office, is aimed at improving the transparency and integrity of mineral title administration, giving investors confidence in their tenure. These actions demonstrate a clear commitment to breaking with the past Curse.
A Path to a Green Blessing
To escape the “Green Resource Curse,” Nigeria can look to continental strategies for guidance and build a new model of resource governance. The African Mining Vision (AMV) 2009 offers a comprehensive blueprint that emphasizes sustainable and transparent resource management to foster broader economic development. From a legal and policy perspective, this means that the extraction and utilization of Nigeria’s critical minerals must achieve four key strategic goals:
1. Prioritize Long-Term National Benefit: The focus must shift from simply critical minerals to building a value chain within Nigeria. This means investing in domestic processing and refining facilities that produce battery-grade materials or other high-value components. This strategy would create high-skill jobs, attract further investment, and foster technological advancement, in alignment with the long-term goals of Africa’s Agenda 2063.
2. Ensure Equitable Distribution of Wealth: A new legal and regulatory framework must be put in place to ensure that the benefits from critical mineral extraction are shared with the host communities, youth, and other vulnerable populations, ensuring a just transition. This includes transparent and enforceable legal contracts that guarantee community development agreements and safeguards against exploitation which can prevent the social and humanitarian conflicts that have historically plagued resource-rich regions.
3. Establish a Transparent Legal Framework: To attract foreign investors and combat corruption, a robust and transparent legal and regulatory system must be built. This includes clear and fair licensing procedures, multi-stakeholder engagement in all policy decisions, and a strong mechanism to combat illicit mining. A well-governed sector is essential for attracting the large-scale “green finance” required to fully develop the industry.
4. Align with Global Climate Goals: For the new mining industry to be truly “green,” it must prioritize low-carbon mining practices and environmental protection. This means implementing and enforcing strict environmental, social, and governance (ESG) standards, with a focus on water and biodiversity protection. Legal obligations for land reclamation and environmental remediation are crucial to prevent the “inherited burdens” that have historically been left behind.
Conclusion
The journey of Nigeria with its critical minerals is not just an economic challenge, it is a test of governance, foresight, and political will. The lessons from the Niger Delta are clear: a new approach to resource management is not just a policy option, but a national imperative. By implementing a strategic, equitable, and transparent framework, Nigeria has a unique opportunity to turn its critical minerals from a potential source of conflict into the foundation of a diversified, sustainable, and prosperous future, leading the way for a just energy transition in Africa.
[1] Nigerian Minerals and Mining Act, 2007
[2] Blacks law dictionary
[3] Critical minerals are those ‘essential for a range of today’s energy technologies and for the broader economy’ and whose ‘strategic importance has also increased’ due to growing demand and supply concentration; International Energy Agency, 2025, Global Critical Minerals Outlook 2025
[4] International Energy Agency. Global Critical Minerals Outlook 2025.
[5] Ecofin Agency. (2025) Nigeria Accelerates Shift Towards Critical Mineral Processing
[6] Voice of Nigeria. (2025). Nigeria’s Solid Minerals Sector Set to Create Jobs, Boost Economy
[7] African Business. (2025). Nigeria’s Mining Reforms: Unlocking Investment and Growth.
