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

This research report by Good Governance Africa investigates systemic labour and community exploitation by two Chinese-owned extractive companies, Avatar New Energy Materials Company Limited and Hong Tai Quarry Company Limited, operating in Nasarawa State, Nigeria. The report documents severe violations of the Nigerian Labour Act, failure to meet community development obligations under a Memorandum of Understanding (MoU), and economically imbalanced land lease agreements that result in the dispossession of local landowners.

• 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, and annual leave, and face immediate dismissal for attempting to unionise.
• 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.
• Avatar New Energy Materials Company Limited employs a punitive compensation and shift system. Workers earn between ₦60,000 and ₦80,000 monthly, and are pressured to work on Fridays or Sundays through a system where refusal results in a ₦4,000 deduction, while acceptance earns double pay.
• Hong Tai Quarry Company Limited has systematically failed to implement the social and infrastructural obligations outlined in its 2021 Memorandum of Understanding (MoU) with the Gurku chiefdom. Unfulfilled promises include road rehabilitation, annual bursary grants for five students, water infrastructure, and a 30% community employment quota.
• Operations by Hong Tai Quarry Company Limited have caused significant environmental degradation in the Gurku community. Blasting activities, occurring two to three times weekly, have caused buildings to crack and created dust and chemical pollution leading to respiratory issues.
• Land lease agreements between Hong Tai Quarry Company Limited and landowners are economically imbalanced, leading to 'creeping' land grabbing. These 20-year leases provide low, fixed payments (starting at ₦15,000 per plot annually) that are eroded by inflation and lack provisions for environmental remediation or loss of livelihood.

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} }