By Gloria Ikibah
The House of Representatives wants a comprehensive roadmap to develop Nigeria’s lithium mining infrastructure, as its emphasised the need for clear regulatory and legal frameworks to establish a strong lithium value chain policy, linking mining approvals to investments in downstream and midstream segments.
The House also urged the Ministry of Solid Minerals Development to set up the Nigerian Lithium Production Agency, as outlined in Part II, Section 4(P) of the Nigerian Minerals and Mining Act 2007. This agency would oversee the creation of a vertically integrated lithium industry.
Additionally, the House called for increased funding for the Nigerian Geological Survey Agency (NGSA). This would enable detailed mapping and high-resolution surveys to determine Nigeria’s lithium deposit potential accurately.
These recommendations was sequel to the adoption of a motionton the, “Need to Upscale the Lithium Industry and Value Chain as a Catalyst to Drive Energy Sufficiency and Economic Growth”, by Rep. Victor Obuzor, on Wednesday at plenary.
Rep. Obuzor highlighted that Nigeria possesses vast mineral resources, including lithium, but the mining sector remains underdeveloped. “Mining contributed significantly to the economy in the early 1900s, peaking in the 1950s at about 4–5% of GDP. Today, it contributes less than 0.8%,” he noted.
He explained that lithium, a key component in energy-dense batteries used for clean energy solutions, is essential for global energy transition. “These batteries store more energy per volume, making them ideal for portable devices and grid storage,” he said.
The House observed that while exploration under the National Integrated Mineral Exploration Project (NIMEP) has uncovered significant lithium-bearing minerals in states like Nasarawa, Kogi, Ekiti, and Plateau, there is still no clear estimate of the country’s reserves.
“It is concerning that despite a $700 billion mining potential, lithium exploration in Nigeria is poorly funded. Challenges in project design and implementation have hindered progress,” they added.
The House noted that the price of high-quality lithium carbonate has surged, from $5,180 in 2010 to $46,000 in 2023, making previously overlooked deposits profitable. With global demand expected to rise 13 times by 2040, Nigeria risks repeating past mistakes in the oil and gas sector by focusing solely on upstream operations and neglecting downstream opportunities.
According to the NGSA, some exploratory samples in Nigeria showed up to 13% lithium oxide content—far higher than the global average of 1–2%. However, the Solid Minerals Development Fund (SMDF), created to encourage private sector investments in mining, has yet to make significant investments in lithium mining.
The House emphasized the urgent need to harness this potential for economic growth and energy security.