In a decisive move aimed at revitalizing Nigeria’s mining sector and tapping into the burgeoning global demand for lithium, the House of Representatives has called on the Ministry of Solid Minerals Development to secure increased funding for the Nigerian Geological Survey Agency (NGSA). This funding boost is intended to support comprehensive mineral site mapping and high-resolution airborne surveys, including radiometric and electromagnetic assessments, to accurately quantify the nation’s lithium deposits.
The decision followed a motion presented by Mr. Victor Obuzor during a plenary session. Titled “Need to Upscale the Lithium Industry and Value Chain as a Catalyst to Drive Energy Sufficiency and Economic Growth,” the motion underscored the strategic importance of lithium in the global clean energy transition and Nigeria’s opportunity to capitalize on it.
Leading the debate, Mr. Obuzor emphasized the urgent need to establish a dedicated Nigerian Lithium Production Agency, in line with provisions of the Nigerian Minerals and Mining Act of 2007. This proposed agency would focus on developing a vertically integrated lithium industry, laying out a roadmap for the necessary infrastructure, and formulating a regulatory framework to govern the sector.
Mr. Obuzor also highlighted the House’s concern over the underdevelopment of Nigeria’s mining sector. He noted that despite the country’s vast mineral resources, including metallic ores and gemstones spread across various geological zones, mining currently contributes less than 0.8% to the national GDP—a significant decline from its peak in the 1950s when it accounted for 4-5%. This downturn, he said, followed the discovery and subsequent prioritization of oil and gas.
“Lithium is pivotal for energy-dense rechargeable batteries essential to the global transition toward clean energy,” Obuzor stated. He pointed out that the global demand for lithium, driven by its role in powering portable devices and grid storage, is expected to surge 13-fold by 2040, according to the International Energy Agency (IEA).
Despite Nigeria’s potential, there is currently no definitive estimate of its lithium reserves, even though exploratory surveys have shown promising results, particularly in states such as Nasarawa, Kogi, Kwara, Ekiti, Cross River, Ogun, and Plateau. Samples from these regions reportedly contain lithium oxide content as high as 13%, far surpassing the global average of 1-2%.
Obuzor warned that Nigeria risks repeating mistakes made in the oil and gas sector by focusing solely on upstream activities and neglecting midstream and downstream value chains. He cited the dramatic increase in lithium carbonate prices, which soared from $5,180 per ton in 2010 to a peak of $68,100 in 2022, as a sign of the lucrative opportunities Nigeria could harness if it invests wisely.
The House also expressed concern over the management of the Solid Minerals Development Fund (SMDF), a sovereign fund intended to stimulate private sector investment in the mining industry. Since its establishment, the fund has made little progress in advancing lithium exploration or development.
In response, the House mandated its Committee on Solid Minerals Development to conduct a thorough audit of the SMDF’s accounts from 2015 to date. This investigative step aims to uncover any bottlenecks hindering the fund’s effectiveness and to ensure transparency and accountability.
Following a voice vote led by Speaker Tajudeen Abbas, the motion was unanimously adopted, signaling broad legislative support for revamping Nigeria’s mining sector and positioning the country as a key player in the global lithium market.