The Nigerian House of Representatives has called on the Ministry of Solid Minerals Development to prioritize lithium production as a key strategy for boosting revenue. This resolution followed a motion presented by Rep. Victor Obuzor (PDP-Rivers) during Wednesday’s plenary in Abuja.
In his motion, Obuzor expressed concern over the underdevelopment of Nigeria’s mining sector despite the country’s abundant mineral resources. He noted that mining, which was a significant contributor to the economy in the early to mid-20th century, has drastically declined since the discovery of oil and gas.
“Mining accounted for 4-5% of GDP in the 1950s but has now dwindled to less than 0.8%, far below the African average of nearly 5%,” Obuzor stated.
He emphasized the global importance of lithium, a vital component in energy-dense rechargeable batteries used for clean energy solutions. These batteries are essential for portable devices and grid energy storage, making lithium a critical resource for the global energy transition.
Lithium’s Untapped Potential in Nigeria
Obuzor highlighted that while Nigeria possesses significant lithium-bearing minerals in states like Nasarawa, Kogi, Kwara, Ekiti, Cross River, Ogun, and Plateau, there is no definitive estimate of the country’s reserves. This is despite exploratory surveys undertaken by the Ministry of Solid Minerals Development under the National Integrated Mineral Exploration Project (NIMEP).
He warned that Nigeria is at a crossroads in its mining history, driven by increasing global demand for renewable energy. However, the country risks repeating past mistakes in the oil and gas sector by focusing solely on the upstream value chain and neglecting midstream and downstream opportunities.
Soaring Global Demand for Lithium
The lawmaker noted the dramatic rise in the price of lithium carbonate, which surged from $5,180 in 2010 to $46,000 in 2023, with a peak of $68,100 in 2022. This surge underscores the economic viability of previously overlooked deposits.
According to the International Energy Agency (IEA), global demand for lithium could increase 13-fold by 2040. Despite Nigeria’s estimated $700 billion mining potential, lithium exploration remains underfunded, with only a fraction of projects reaching full potential due to design, construction, and production challenges.
Obuzor also pointed out that exploratory samples from the Nigerian Geological Survey Agency (NGSA) show promising lithium oxide content of up to 13%, far exceeding the global average of 1-2%.
Legislative Recommendations
The House urged the Ministry of Solid Minerals Development to establish a Nigerian Lithium Production Agency under the Nigerian Minerals and Mining Act, 2007. This agency would focus on developing a vertically integrated lithium industry and creating a roadmap for the necessary infrastructure to support lithium mining.
Lawmakers also recommended the creation of a regulatory framework linking mining approvals to substantial investments in the midstream and downstream segments of the lithium value chain.
Additionally, the House called for increased funding for the Nigerian Geological Survey Agency to facilitate detailed mapping and high-resolution airborne surveys, including radiometric and electromagnetic surveys, to accurately assess the country’s lithium deposits.
By implementing these measures, the legislators aim to position Nigeria as a key player in the global lithium market, ensuring sustainable growth and economic diversification.
