The Missing Exports And Hidden Royalties – Lithium


By Biliyaminu Suraj 
biliyasuraj1980@yahoo.com 



The Ministry of Solid Minerals has failed to disclose massive export of lithium to China and gold to the UAE and has hidden from the Nigerian public any evidence that royalties on the lithium and gold have been paid. Where are the royalties?


Nigeria does not publish reliable, timely, or detailed mineral export data. The Ministry of Solid Minerals Development (MSMD) and the Mining Cadastre Office (MCO) do not publish operator-level royalty or production data disaggregated by mineral type. The Nigerian Export Promotion Council and the Central Bank of Nigeria record mineral export values in aggregate, with significant lags and without the tonne-level detail needed to compute royalty liabilities. 


Nigerian Federal Government authorities do not publish any reliable data about the export of lithium despite the continuous hype from Minister Alake about the alleged billions of dollars of foreign investment in lithium production.


Thus, when it comes to knowing how much lithium and gold, Nigeria’s two most important minerals being mined and exported, analysis must rely on mirror data. “Mirror data” refers to trade statistics recorded by the importing country rather than by the exporting nation’s own authorities. The two most significant destinations for Nigeria’s lithium and gold are China and UAE respectively. Both publish data for minerals imported from Nigeria. In this article, we examine Nigeria’s Lithium exports and the royalties that should be generated by these exports. 


Lithium Exports and Royalties
Chinese customs data collected by the General Administration of Customs of the People’s Republic of China (GACC), as published by Shanghai Metals Market (SMM) and Mysteel, covering Nigerian spodumene/lithium ore arrivals in China, provides the only publicly available consistent series that allows an approximate assessment of the scale of Nigerian spodumene exports, and by implication, the royalty liability that should theoretically have been generated and paid to Nigeria. (Spodumene is one of the main raw ores or minerals from which lithium is extracted).


A compilation of data published by Shanghai Metals Market (SMM) and Mysteel, covering Nigerian spodumene/lithium ore arrivals in China reveals that in 2024 Chinese Customs recorded imports of approx. 450,000t of Spodumene from Nigeria. At a royalty rate of N9,500/t the royalty due to the Nigerian Government was N4.3 billion (see Table 1).
 

In 2025 Chinese Customs recorded imports of approx. 1.2Mt of Spodumene from Nigeria. Using the same royalty rate of N9,500/t the royalty due to the Nigerian Government was N11.4 billion. 
2026 is on track to be on par with 2025 with royalties accumulating to the Nigerian Government of more than N11 billion.

Implied Scale of Undisclosed Exports and Royalty Payments. 

A full-year 2025 estimate of approximately 1.1–1.2 million tonnes of Spodumene arriving in China from Nigeria, combined with whatever volumes were exported to other destinations (India, Europe, Japan) or processed domestically, implies a Nigerian spodumene production base significantly larger than anything disclosed in Nigeria’s Solid Minerals Ministry data. The March 2025 reporting period of the Mining Cadastre Office does not identify Nigerian Spodumene production at any volume close to these levels. 

The gap between the figures from Chinese customs arrivals of lithium from Nigeria and Nigerian official production data gives rise to serious questions not only about the level of Spodumene production but also about the flow of royalties. 

Were the royalties not paid by the Chinese? If the royalties were not paid it seems unlikely the Chinese authorities would publish the import data and thus bring attention to the issue of unpaid royalties. 


Companies in Nigeria are now paying all mining royalties directly to the Nigeria Revenue Service (NRS). All royalty payments began flowing to the Nigeria Revenue Service (NRS) on 1 January 2026. This is the official commencement date of the new royalty collection regime. Before 1 January 2026, all mining royalty payments in Nigeria were made to the Ministry of Solid Minerals (formerly the Ministry of Mines and Steel Development).

So, assuming the Chinese paid the lithium royalties in 2024 and 2025 to the Ministry of Solid Minerals, why aren’t they shown? More importantly … did the royalties actually reach the Ministry of Solid Minerals own Treasury Single Account (TSA) sub accounts at the Central Bank of Nigeria?

To date we have evidence published by Chinese authorities of the import of approximately 2 million tonnes of lithium from Nigeria. However, there is no evidence published by Nigerian authorities of royalties being paid.  

Where are the missing royalties?

If lithium mining companies are not paying royalties, then they are likely not paying taxes. What is the benefit to the nation of the billions of dollars that Minister Alake alleges has been invested in the solid minerals sector if corporate taxes and royalties are not being paid?

Comments

Post a Comment

Popular posts from this blog

GOVERNOR'S AXE TO FALL: KADUNA CABINET RESHUFFLE IMMINENT AS INCOMPETENCE TAKES CENTER STAGE

Image
A major shake-up is brewing in Kaduna State's government, with Governor Uba Sani poised to sack two top commissioners accused of incompetence and poor performance. Hon. Sadiq Mamman Lagos (Local Government and Chieftancy Affairs) and Hon. Ahmed Maiyaki (Information) are reportedly on the chopping block, facing allegations of ineptitude and neglect of duty. Sources indicate that Maiyaki, a former KSMC boss, has been criticized for his inaccessibility to journalists, ignoring calls and messages, and favoring select media outlets. Lagos, on the other hand, is accused of arrogance, intimidation, and disrespect to elders and elites, allegedly driving some APC members to defect. The governor is under pressure to act, with critics warning that the duo's continued presence in the cabinet could jeopardize APC's chances in the 2027 elections. Others may also face portfolio changes as Sani seeks to revamp his administration and deliver on campaign promises. As whispers of ...
Read more

CORRUPTION, ABUSE OF OFFICE AND NEPOTISM ROCK FEDERAL UNIVERSITY OF EDUCATION, ZARIA

Image
... Petitioners Call for Urgent Probe of Finances, Staffing; VC Bunkure Yet to Respond The Federal University of Education, Zaria {FUEDZ} is facing allegations of financial impropriety, abuse of office and nepotism, with petitioners urging the Federal Government and anti-graft agencies to intervene. The Federal University of Education Zaria which was upgraded to a University level recently by Late President Muhammadu Buhari is one of the oldest institutions in Nigeria which started as a Teachers Institution known as Advanced Teachers College also affiliated to the Ahmadu Bello University Zaria, as time goes it was transformed from ATC to the Federal College of Education and now possess a university standard. Professor Yahaya Isah Bunkure goes by his track records and achievements as Provost in the Saadatu Rimi College of Education Kano was appointed as its pioneer Vice Chancellor about ten months ago. It is understood that before the appointment of P...
Read more

ALLEGATION: ‘We Wrote Election Results…, Not Once, Not Twice’ – Hon. Mamadi

Image
By Comrade Musa Mohammed Moonlight  'A serious criminal claim' A video allegedly showing Hon. Muhammad Abubakar Mamadi, Special Adviser on Political Matters to Gov Uba Sani & Coordinator, Kaduna Reknow Hope for Tinubu 2027, is circulating online.  In the clip, he is heard saying the phrase “We Wrote Election Results… Not Once, Not Twice” in reference to Igabi LGA, Kaduna State. The clip has sparked public reactions with citizens calling for: 1. Verification of the video’s authenticity and full context  2. Official response from Hon. Mamadi and Kaduna State Government  3. Investigation by INEC and security agencies if any provisions of the Electoral Act 2022 were breached Until investigations are concluded, the principle of “innocent until proven guilty” applies. Accountability and due process must go together for democracy to work.
Read more