The United States has warned that illegal mining poses a grave threat to Nigeria’s economic development and national sovereignty, urging greater transparency and accountability in the extractive sector.

In a post on Tuesday tagged #TransparencyTuesday, the U.S. Mission in Nigeria stated that illicit mining not only undermines the country’s economic future but also fuels transnational corruption. It called for stronger governance in the mineral resources industry, which it described as critical to ensuring a secure and transparent global supply chain.

“Accountability in the extractives sector is essential to protecting Nigeria’s sovereignty and ensuring a secure and transparent global supply chain, which is core to U.S. strategic interests,” the Mission said.

The warning came just hours after Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC), announced the arraignment of two Chinese nationals, Zhang Hong Lin and Zhao Pei Hai, accused of engaging in illegal mining operations and unlawful exportation of mineral resources.

The suspects were brought before Justice Chukwujekwu Aneke of the Federal High Court in Ikoyi, Lagos, on June 4, 2025. They face a five-count charge bordering on conspiracy, unlawful possession, and exportation of mica, copper-bearing, and lithium-bearing minerals without government approval.

According to the EFCC, a third suspect, Gao Pei Yu, is still at large. The agency alleges the accused acted with the intent to defraud the Federal Government of revenue by illegally exporting the minerals.

The defendants pleaded not guilty. While the prosecution, led by Bilkisu Buhari, requested that the accused be remanded in a correctional facility pending trial, the defence appealed for continued custody under the EFCC. Justice Aneke denied the request and ordered their remand in a Correctional Centre, adjourning the case to July 4 for trial.

According to reports, illegal mining costs the country more than $9 billion each year, with the only money coming from a three percent royalty paid by the few licensed miners.

Meanwhile the Nigerian Army had arrested over 387 people in connection with illegal mining activities over the last seven months. Many of the arrests were in connection with extraction of lithium, which is experiencing soaring demand.