Nigeria Rejects Lithium Licence Claims, Reaffirms Mining Reforms and Investor Rules Amid Dispute
The Federal Government of Nigeria has strongly rejected allegations made by a foreign-linked mining firm, accusing it of attempting to spread misinformation about the country’s mining sector amid an escalating dispute over revoked mineral licences.
In an official statement, Segun Tomori, spokesperson to the Minister of Solid Minerals Development, Dele Alake, dismissed claims that authorities had seized a lithium project and handed it over to foreign operators.
The allegations were linked to a report suggesting that Nigeria had taken control of a British-affiliated lithium venture under armed guard.
No Legal Ties to Alleged Company
Tomori clarified that the government has no legal or contractual relationship with any entity operating under the name “Jupiter Lithium,” directly contradicting claims made by the firm.
He further emphasized that Nigeria’s mining framework, governed by the Nigerian Minerals and Mining Act of 2007, sets clear rules on licensing and operations within the sector.
According to the government, the allegations are “baseless and unfounded,” and appear to be part of a deliberate attempt to misrepresent regulatory actions.
Licence Revocation Over Non-Compliance
Authorities explained that the dispute stems from the revocation of mineral titles previously held by Basin Mining Ltd, a locally registered company reportedly linked to Australian national Stephen Davis.
The licences were withdrawn after the company failed to meet statutory obligations, including the payment of annual service fees required under Nigerian mining regulations.
According to the Ministry, the unpaid fees amounted to ₦2.494 billion, covering multiple mineral titles across the 2024 and 2025 fiscal years.
Officials stressed that due process was followed, with prior notices issued before the licences were revoked.
The government also firmly denied claims that the revoked licences were reassigned to any Chinese operator, describing such assertions as “a complete fabrication.”
Counterclaims from the Company
In contrast, Jupiter Lithium’s chairman, Stephen Davis, alleged that Nigerian authorities unlawfully revoked the company’s mining rights and enabled foreign operators to take over the project.
The company claims it had invested years in exploring and developing a significant lithium deposit after initially acquiring rights in 2006.
It further alleged that security personnel facilitated access to the site for new operators following the revocation.
Jupiter Lithium has warned that the dispute could raise concerns about investor protection and potentially affect Nigeria’s attractiveness to Western investors.
Government Raises Concerns Over Speculative Licensing
Nigerian authorities maintain that the issue is strictly one of regulatory compliance, not expropriation.
The Ministry also raised broader concerns about speculative practices within the mining sector.
According to officials, some operators acquire mineral licences without undertaking meaningful exploration or production activities.
This practice, they argue, contributes to illegal mining and prevents serious investors from accessing viable opportunities.
Tomori linked Davis to several other mining entities operating in Nigeria, alleging a pattern of licence acquisition without corresponding development.
Context: Rising Global Demand for Lithium
The dispute comes at a time of intensifying global competition for lithium, a critical mineral used in electric vehicle batteries and renewable energy storage systems.
With significant lithium deposits identified across central and northern regions, Nigeria has emerged as an increasingly attractive destination for mining investment.
In response, the government has been implementing reforms aimed at:
- Strengthening regulatory oversight
- Promoting local value addition and processing
- Attracting long-term, compliant investment
- Reducing illegal mining activities
Reform Agenda Remains Firm
Despite the controversy, Nigerian authorities have reiterated their commitment to ongoing sector reforms.
Officials stressed that the government will not be pressured into reversing regulatory decisions, emphasizing that all investors must operate within the country’s legal framework.
At the same time, Nigeria continues to position itself as an investment-friendly destination, offering incentives such as tax waivers on mining equipment imports and provisions for profit repatriation.
The lithium licence dispute highlights the growing pains of a sector undergoing rapid transformation.
While tensions between regulators and investors may arise, Nigeria’s government has made clear that compliance, transparency, and long-term value creation remain central to its mining strategy.
As global demand for critical minerals accelerates, how Nigeria balances investor confidence with regulatory enforcement will be key to unlocking the full potential of its mining industry.
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