Nigeria has just confirmed some of the most significant mineral finds in its history, and the first question almost nobody asks is the one that matters most: who actually holds mineral ownership of these resources?
At the African Natural Resources and Energy Investment Summit in Abuja in June 2026, the Minister of Solid Minerals Development, Dele Alake, announced that the Nigerian Geological Survey Agency had confirmed a “world-class” polymetallic province in Kaduna State – platinum group metals, gold, nickel, copper, lithium and rare earths. The announcement brings the question of mineral ownership in Nigeria into sharper focus, particularly for landowners, investors and mining companies seeking to understand who controls the resources beneath the country’s land.
Indigenous operator Steron Mining has separately put lithium reserves near Abuja at an estimated 3.3 million tonnes, part of a wider resource of around 94.8 million tonnes, with some Nigerian spodumene reportedly grading well above the global commercial average. The headlines promised this to be an escape from oil dependence. But here is what those headlines skipped: if lithium is found under your land in Nigeria, it does not belong to you. Under the Constitution and the Nigerian Minerals and Mining Act 2007, it belongs to the Federation – and understanding that gap between owning land and owning what lies beneath it is where every mining deal in Nigeria begins.
Who Owns Minerals in Nigeria? What the Law Says
Under Section 44(3) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), all minerals, oil, and natural gas found in or on land in Nigeria are vested in the Federal Government. This means the government manages these resources on behalf of the Nigerian people. Even if you hold a valid title to land in Kaduna or have cultivated it for generations, the lithium underneath does not belong to you; it belongs to the Federation.
There is another layer to this situation that many landowners may not realise. Section 1(2) of the Nigerian Minerals and Mining Act 2007 states that if minerals are discovered in commercial quantities, the Federal Government has the authority to acquire the land under the Land Use Act 1978. In simpler terms, if a mineral find is significant, it could lead to losing the land. Compensation is provided, but only under the government’s terms.
Mineral Rights vs Surface Rights: Why One Plot Has Two Owners
The reality of Nigerian resource law often confounds even seasoned investors. While the Federal Government owns the minerals, the land’s surface is controlled by the State Governor, who holds it in trust according to the Land Use Act 1978. This gives rise to a unique conundrum: a single plot of land in Kaduna is managed by two authorities – Abuja owns the lithium, while the Kaduna State Governor oversees the surface rights. Thus, engaging in a mining venture in Nigeria is never a straightforward process. Investors must secure a mineral title from the Federal Government and manage surface rights with the State and, critically, engage with the local community. Investors who overlook state or community considerations often find out the hard way just how crucial they are to success.
How to Get a Mining Licence in Nigeria: The Mineral Title Tiers
Even after discovering a mineral deposit, securing the right to extract it requires navigating complex legal pathways. Section 1 of the Nigerian Minerals and Mining Act 2007 prohibits mineral exploration or extraction without proper authorisation. This authority is granted through a mineral title from the Mining Cadastre Office (MCO). The process is tiered and careful planning is essential:
- Reconnaissance Permit: Grants non-exclusive rights to search, allowing access to land for surface sampling and assessments.
- Exploration Licence: Confers exclusive rights to explore a defined area and prove the existence of a resource. The holder of this licence typically has the first opportunity to convert this into a mining lease.
- Small-Scale Mining Lease: Pertains to more modest mining operations.
- Mining Lease: This is the ultimate goal, allowing the holder to extract and sell minerals for an initial term of up to 25 years, with options for renewal.
It is also central to note that mineral titles can only be granted to Nigerian citizens or companies registered under the Companies and Allied Matters Act 2020 (CAMA). Foreign investors must collaborate with local entities to navigate this landscape effectively. Alake made the point bluntly at the summit: the government had revoked over 3,000 dormant or defaulting mineral titles to discourage speculation. Under the Act, titles carry work obligations, fee obligations and reporting duties — and Section 151 of the Nigerian Minerals and Mining Act 2007 (NMMA) empowers revocation where those conditions are breached.
Mining and Host Communities: The Community Development Agreement (CDA)
When it comes to mining leases, the story begins not with the licence, but with the community that calls the land home. The Nigerian Minerals and Mining Act 2007 (NMMA) mandates that any holder of a mining lease must enter into a Community Development Agreement (CDA) with the host community before commencing any operations. This is not just about courtesy; it is a legal requirement designed to ensure that the community receives tangible benefits, such as jobs, infrastructure, education, and a genuine economic stake in the project, while also transferring social and environmental responsibilities to the operator.
In addition to the CDA, mining operators must navigate a series of stringent obligations, including conducting an Environmental Impact Assessment (EIA), creating an Environmental Protection and Rehabilitation Programme, and obtaining consent from landowners or lawful occupiers in accordance with Section 100 of the Nigerian Minerals and Mining Act 2007 (NMMA) before launching operations on their land. Ignoring these requirements does not simply mean you are non-compliant; it sets the stage for conflict. Nigeria’s past experiences, particularly in the Niger Delta, illustrate the consequences of treating local communities as obstacles rather than stakeholders. A CDA that feels like a mere formality breeds resentment, while a thoughtfully crafted agreement cultivates a social license to operate, something that no official permit can replace.
The Minister’s Paradox: Why Nigeria’s Mineral Wealth Hasn’t Paid Off
What stood out most was the Minister’s acknowledgement that Nigeria’s mineral wealth has historically failed to translate into real national value. The pattern is familiar: strong global demand but thin geological data; legal authority on paper but weak enforcement; a busy sector, but one dominated by informality.
This encapsulates the entire narrative of Nigeria’s resource sector in a single sentence: we possess minerals aplenty, yet lack the governance necessary to transform these resources into shared prosperity. Oil should have served as a key lesson in this respect. There is a legitimate fear that lithium could end up as “oil 2.0,” a new resource flowing into a dysfunctional governance system that enriches a select few while leaving many behind.
The governments proposed solution – transitioning from raw ore exports to domestic processing and value addition – commendable great on paper. The objective is clear: by refining minerals domestically, we can retain the jobs, economic benefits, and profits within Nigeria instead of shipping raw spodumene abroad and then buying back expensive finished batteries. While this ambition is commendable, the real challenge lies in its implementation. The true value that remains in Nigeria won’t depend solely on the size of mineral deposits but on the integrity of contracts, licensing processes, CDAs, and the governance that surrounds them.
What the Lithium Discovery Means for Landowners and Investors
Beneath the excitement surrounding mineral discoveries lies a fundamental legal and contractual undertaking, and the implications vary for different stakeholders:
- For Landowners and Communities in Kaduna, Nasarawa, Abuja, and throughout the mineral belt: It is crucial to understand that while the minerals beneath your land are federally owned, your rights still matter. You have leverage through your consent under Section 100, potential compensation, and the necessity for a well-negotiated Community Development Agreement. If approached thoughtfully, these elements can ensure that wealth generated from your land is shared rather than siphoned away.
- For Investors and Mining Companies, both local and foreign: The opportunity is real, but it comes with a stringent licensing regime that rewards thoroughness and punishes shortcuts. It is essential to set up the right corporate structure under the Companies and Allied Matters Act (CAMA), secure the appropriate level of mineral title in the correct order, align federal mineral rights with state surface rights, and treat CDAs and environmental responsibilities as integral aspects of the deal, rather than mere afterthoughts.
- For Nigeria as a whole: The real prize lies not in the lithium itself, but in finally demonstrating our ability to govern and manage resources effectively.
In conclusion, Nigeria’s lithium discovery holds immense potential, but understanding the intricacies of mineral ownership and extraction is essential for any developer or investor in this vibrant market. Engaging thoughtfully with both legal requirements and local communities will be key to unlocking success in this emerging sector.
This is the work we do. At OAL’s Energy and Natural Resources practice, we offer guidance to investors, operators, landowners, and communities throughout the mining value chain— from title acquisition and due diligence at the Mining Cadastre Office, to corporate structuring under CAMA, community development agreements, environmental compliance, and dispute resolution. If you’re looking to navigate Nigeria’s burgeoning critical minerals sector and want to get it right from the start, talk to us.
Frequently Asked Questions
1. Who owns mineral resources in Nigeria?
The Federal Government owns all mineral resources. According to Section 44(3) of the 1999 Constitution and Section 1 of the Nigerian Minerals and Mining Act 2007, all minerals are federally controlled, irrespective of land ownership.
2. If lithium is found under my land, do I own it?
No, while you may own the surface rights to your land, the minerals beneath it are owned by the Federation. You are entitled to having your consent sought under Section 100 of the Nigerian Minerals and Mining Act 2007 (NMMA) and to receive compensation. Moreover, the government may acquire land identified to contain commercially viable minerals under the Land Use Act.
3. What license do I need to mine in Nigeria?
To mine in Nigeria, you need to obtain a mineral title from the Mining Cadastre Office. This title can range from a Reconnaissance Permit to various other licenses depending on the type of mining activity you intend to pursue.
