The House of Representatives is advocating for increased funding for the Nigerian Geological Survey Agency to enhance lithium deposit mapping, aiming to boost Nigeria’s revenue and economic growth. A proposed Nigerian Lithium Production Agency is intended to develop the lithium industry. Despite Nigeria’s rich mineral resources, a lack of funding hampers development, particularly in the lithium sector, which has substantial economic potential given the soaring demand for lithium in clean energy applications.
The House of Representatives has urged the Ministry of Solid Minerals Development to seek additional funding for the Nigerian Geological Survey Agency (NGSA) to improve mineral mapping and assess Nigeria’s lithium reserves accurately. This initiative aims to stimulate revenue from lithium, which plays a crucial role in clean energy technologies. The call followed a motion by Rep. Victor Obuzor, highlighting the potential of Nigeria’s mineral wealth, particularly in lithium, which is vital for rechargeable batteries and the global energy transition.
The motion proposes establishing a Nigerian Lithium Production Agency aligned with the Nigerian Minerals and Mining Act 2007 to foster a comprehensive lithium industry and regulatory framework. Mr. Obuzor emphasised lithium’s increasing market value, noting a significant jump from $5,180 per tonne in 2010 to $46,000 in 2023. Despite promising lithium discoveries in several states, the country suffers from a lack of comprehensive data on reserves and inadequate funding for mining projects.
Obuzor expressed concern over missed opportunities in the lithium sector, attributing this to underinvestment and inadequate funding structures, such as the Solid Minerals Development Fund (SMDF), which has not effectively catalysed investments in lithium mining. He highlighted the need for urgent action to capitalise on the burgeoning lithium market, which is poised for significant growth in the coming years, as global demand could increase dramatically by 2040, driven by the clean energy push.
Nigeria has abundant mineral resources, yet its mining sector has declined significantly since the mid-20th century, primarily due to the oil and gas boom, which diverted focus from mining. Currently, the mining sector contributes less than 0.8% to Nigeria’s GDP compared to the continental average of nearly 5%. The urgent need for enhanced funding and strategic development in the lithium industry arises amid a growing global demand for lithium, particularly for clean energy applications such as battery production.
To revitalise Nigeria’s mining sector and leverage its lithium resources, increased funding for the NGSA and the establishment of a dedicated lithium agency are essential. With lithium’s soaring price and global demand set to rise, Nigeria has the opportunity to harness its mineral wealth, provided that necessary investments and frameworks are put into place. The call for action from the House of Representatives reflects a critical need for change in the country’s approach to mining and resource management.
Original Source: nairametrics.com