By Chukwudi Obasi, Abuja
The House of Representatives has called for creating a roadmap for developing the infrastructure required by potential lithium mines in Nigeria.
It also called for the design of the regulatory and legal framework governing the sector.
The House said the framework aims to establish a lithium value chain policy that links mining approvals to significant investments in midstream and downstream segments of the value chain.
It urged the Ministry of Solid Minerals Development to cause the creation of the Nigerian Lithium Production Agency in line with Part II Section 4(P) of the Nigerian Minerals and Mining Act 2007 with the mandate to develop a vertically integrated lithium industry.
It also urged the Ministry of Solid Minerals Development to request increased funding from the Nigerian Geological Survey Agency (NGSA) to enable it to carry out mineral site mapping and high-resolution airborne surveys, including radiometric and electromagnetic surveys, to determine the quantity of lithium deposits in Nigeria accurately.
These resolutions followed the adoption of a motion sponsored by Victor Obuzor titled “Need to Upscale the Lithium Industry and Value Chain as a Catalyst to Drive Energy for Sufficient and Economic Growth.”
The House noted that Nigeria’s vast mineral resources, including metallic ore, energy, industry, construction, and gemstones, are deposited across various geological groups. Yet, the mining sector still needs to be developed.
It said mining was a major contributor to the economy in the 1900s, reaching a peak in the 1950s at roughly 4-5 percent of GDP.
However, the industry declined after the discovery of oil and gas. Currently, mining accounts for less than 0.8 percent of GDP, much less than the continent’s average of almost 5 percent.
The House also noted that lithium, a reactive metal, is utilized in energy-dense rechargeable batteries, which are crucial for the global clean energy transition.
The House said these lightweight, compact batteries store more energy per volume, making them ideal for portable devices and grid storage.
It was concerned that no definitive estimate of the country’s lithium reserves exists despite exploration surveys commissioned by the Ministry of Solid Minerals Development under the National Integrated Mineral Exploration Project (NIMEP).
The House said significant lithium-bearing minerals have been discovered in Nasarawa, Kogi, Kwara, Ekiti, Cross River, Ogun, and Plateau States.
It worried that the country is facing a pivotal moment in its mining history due to rising global demand for renewable energy.
However, it is repeating past mistakes in the oil and gas sector by focusing solely on the upstream value chain, missing opportunities to operate in the downstream segments.
The price of high-quality lithium carbonate increased from $5,180 in 2010 to $46,000 in 2023 (with a peak of $68,100 in 2022), making previously abandoned deposits economically viable.
The House noted that the IEA predicts global demand could rise 13 times by 2040.
It was alarming that despite an estimated $700bn worth of mining potential, lithium exploration in Nigeria still needs to be funded. Due to design, construction, and production challenges, only a fraction of projects reach their full potential.
According to the Nigerian Geological Survey Agency (NGSA), exploratory samples showed promise, with minerals containing up to 13 percent lithium oxide. The global average mine ore contains about 1-2 percent lithium oxide.
The House was concerned that the Solid Minerals Development Fund (SMDF), a sovereign fund that catalyses private sector investments in Nigeria’s mining sector, has not made any significant investments in lithium mining.
