The House of Representatives in Nigeria has called on the Ministry of Solid Minerals Development to enhance lithium production as a means to boost revenue. This decision follows a motion by Rep. Victor Obuzor, highlighting the sector’s underdevelopment despite the country’s rich mineral resources.

Obuzor noted that mining’s contribution to Nigeria’s GDP has plummeted from about five percent in the 1950s to less than 0.8 percent today, largely due to the rise of oil and gas. He advocated for increasing focus on lithium, critical for energy-dense batteries essential in renewable energy technologies.

Although Nigeria has undetermined lithium reserves, minerals have been found in states like Nasarawa and Kogi. Given rising global demand, with lithium prices soaring to over $46,000 by 2023, there are concerns about insufficient funding for mining initiatives. The Solid Minerals Development Fund has reportedly failed to invest significantly in lithium exploration.

To address this, the legislature proposed establishing the Nigerian Lithium Production Agency, responsible for creating a comprehensive lithium industry, developing infrastructure, and implementing a regulatory framework that would bolster investments in the entire lithium value chain. The House recommended increasing funding for the Nigerian Geological Survey Agency to facilitate proper mineral mapping and surveys.

Lithium is a vital mineral for rechargeable batteries, increasingly important in the shift towards clean energy. Despite Nigeria’s potential in lithium mining, the sector has been neglected over the years in favour of oil. The current move by the House of Representatives highlights a significant shift in policy to leverage natural resources for economic stability.

In summary, the Nigerian House of Representatives is pushing for enhanced lithium production to revive the mining sector, which has seen a sharp decline. With significant global demand for lithium, strategic investments and the establishment of a dedicated agency are seen as crucial steps for Nigeria to harness its mineral wealth effectively.

Original Source: dmarketforces.com

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