LICENSED TO EXPLOIT: COMMUNITY AND LABOUR EXPLOITATION BY CHINESE-OWNED COMPANIES IN NIGERIA’S EXTRACTIVES SECTOR

The report documents systemic exploitation by Chinese-owned extractive companies in Nasarawa State, Nigeria. Avatar New Energy Materials Company Limited is found to be in flagrant violation of the Nigerian Labour Act and ILO Convention 98, employing a coercive labour regime with 12-hour shifts, no breaks, and a strict prohibition on unionisation. Hong Tai Quarry Company Limited is accused of failing to implement a 2021 Memorandum of Understanding (MoU) with the Gurku chiefdom, neglecting promised social investments and causing environmental degradation through blasting and dust pollution. Additionally, the report identifies economically imbalanced land lease agreements by Hong Tai Quarry that result in the economic dispossession of landowners through low, inflation-eroded compensation and a lack of environmental remediation clauses.

• Avatar New Energy Materials Company Limited operates a coercive labour regime that violates the Nigerian Labour Act and ILO Convention No. 98. Workers are subjected to 12-hour shifts without breaks, are denied written contracts, sick leave, health insurance, and annual leave, and face immediate dismissal for discussing the formation of a union.
• Workers at Avatar New Energy Materials Company Limited have reported severe health complications and inadequate nutrition. One former employee developed acute health issues, including bloody stool, after working in pits, while others reported stomach aches and bloating from poor-quality bread provided by the company; the subsequent monthly meal allowance of ₦4,000 is deemed insufficient to cover basic food costs.
• Hong Tai Quarry Company Limited has systematically failed to fulfill the substantive obligations of its 2021 Memorandum of Understanding (MoU) with the Gurku chiefdom. While it provided celebratory grants, it has not implemented promised road rehabilitation, annual bursaries for five students, water borehole construction, or the 30% community employment quota.
• Operations at Hong Tai Quarry Company Limited have caused significant environmental degradation and public health issues in the Gurku community. Blasting conducted two to three times weekly causes buildings to crack and creates dust and chemical smells that lead to respiratory issues such as catarrh.
• Land lease agreements used by Hong Tai Quarry result in economic dispossession. These 20-year leases offer low annual payments (e.g., ₦15,000 per plot) that are lower than the potential income from agriculture and are eroded by inflation, with no provisions for market review, livelihood restoration, or environmental remediation.

APA

Samuel, M. (2026). LICENSED TO EXPLOIT: COMMUNITY AND LABOUR EXPLOITATION BY CHINESE-OWNED COMPANIES IN NIGERIA’S EXTRACTIVES SECTOR. Good Governance Africa. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2026/03/Licensed-to-exploit-Research-Report.pdf

Chicago

Samuel, Malik. LICENSED TO EXPLOIT: COMMUNITY AND LABOUR EXPLOITATION BY CHINESE-OWNED COMPANIES IN NIGERIA’S EXTRACTIVES SECTOR. Good Governance Africa, 2026. https://digitalmallblobstorage.blob.core.windows.net/wp-content/2026/03/Licensed-to-exploit-Research-Report.pdf.

Wikipedia

{{cite report |last1=Samuel |first1=Malik |title=LICENSED TO EXPLOIT: COMMUNITY AND LABOUR EXPLOITATION BY CHINESE-OWNED COMPANIES IN NIGERIA’S EXTRACTIVES SECTOR |publisher=Good Governance Africa |date=March 2026 |url=https://digitalmallblobstorage.blob.core.windows.net/wp-content/2026/03/Licensed-to-exploit-Research-Report.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{samuel2026licensed, author = {Samuel, Malik}, title = {{LICENSED TO EXPLOIT: COMMUNITY AND LABOUR EXPLOITATION BY CHINESE-OWNED COMPANIES IN NIGERIA’S EXTRACTIVES SECTOR}}, institution = {Good Governance Africa}, year = {2026}, month = mar, url = {https://digitalmallblobstorage.blob.core.windows.net/wp-content/2026/03/Licensed-to-exploit-Research-Report.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }