Nigeria is getting in on the action in the global lithium market. The country is implementing stricter regulations on mining its lithium minerals, requiring foreign mining companies to establish processing and refining plants within Nigeria if they want to mine and export raw lithium. The Minister of Solid Materials, Dele Alake, stated that the government is determined to discourage the extraction of solid minerals without adding value. Nigeria, as Africa’s largest economy, aims to capitalize on the lucrative billion-dollar global lithium market with its significant lithium deposits. Currently, lithium is being mined in several Nigerian states, as well as in other African countries like Zimbabwe, Namibia, the Democratic Republic of the Congo, Mali, and Ghana.
The Nigerian government is determined to benefit locally from the raw mineral. Alake emphasized that the era of exporting raw solid minerals from Nigeria is over, and any company wishing to invest in the solid minerals industrial sector must contribute to local value. To obtain mining licenses, companies must now demonstrate business plans that benefit local communities. This move is crucial for job creation, and some companies have already begun operations in Nigeria.
One notable example is Ganfeng Lithium Industry Ltd., a Chinese company that is constructing a lithium processing plant in Nasarawa state. The plant will have the capacity to process approximately 18,000 tons of lithium ore per day to manufacture batteries for electric vehicles. The Nigerian government views this investment as a model for the desired type of investment in the country.
Nigeria, known as Africa’s top oil producer, is also rich in other valuable resources such as gold, limestone, and zinc. However, the mining industry remains underdeveloped, contributing less than 1% to the country’s gross domestic product. In an effort to diversify the economy and reduce dependence on oil, the government is actively promoting the mining sector.
In addition to economic considerations, the Nigerian authorities are also focused on ensuring responsible mining practices and environmental protection. They have issued warnings to foreign nationals, particularly the Chinese, against engaging in illegal lithium mining. The government has been criticized in the past for neglecting the environmental impact of illegal mining activities. The Miners Association of Nigeria has called on the federal government to crack down on these activities, highlighting the health and safety risks involved.
Environmental experts stress the importance of sustainable mining practices to prevent environmental degradation and protect the population. Measures such as employing lower impact mining techniques, reusing mining waste, using eco-friendly equipment, rehabilitating mining sites, and shutting down illegal mining operations are crucial for safeguarding the environment.
The Minister of Solid Materials, Alake, assures that the mining industry is being modernized, and the government is investing significant funds in generating data on the sector through the National Integrated Mineral Exploration Project (NIMEP). The preliminary reports from this project have revealed substantial discoveries, firmly establishing Nigeria as one of the world’s lithium-rich countries.
The Nigerian government is determined to avoid a repeat of the environmental devastation caused by oil activities in the Niger region. Controlling mining activities and implementing responsible practices are paramount.