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

The post Nigerian Reps Advocate for Enhanced Lithium Production Amid Global Demand first appeared on Nigerian Mining News.

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

The post Reps Urge Boost for Nigeria’s Lithium Industry to Drive Revenue Growth first appeared on Nigerian Mining News.

The House of Representatives in Nigeria has urged the Federal Government to boost funding for lithium exploration. This call arose from a motion adopted during a plenary session, sponsored by Victor Obuzor, highlighting the significant price rise of high-quality lithium carbonate, which shifted from $5,180 in 2010 to $46,000 in 2023. Obuzor noted that neglecting lithium’s potential could mirror past errors in the oil and gas sector, where only upstream value is pursued.

The motion emphasized the need for improved funding for the Nigerian Geological Survey Agency to enhance mineral mapping and surveys for lithium deposits. Obuzor indicated that significant lithium-bearing minerals have been found in various states, yet there remains no clear estimate of the nation’s reserves. The House expressed concerns about the lack of investment in lithium mining, despite the Solid Minerals Development Fund being established for this purpose.

Following the motion’s adoption, Speaker Tajudeen Abbas advised the creation of the Nigerian Lithium Production Agency to develop a comprehensive lithium industry and its regulatory framework. Moreover, there will be an audit of the Solid Minerals Development Fund to ensure proper utilisation of resources. Nigeria’s mining sector, once a significant contributor to the economy, now only accounts for less than 0.8% of GDP, mainly due to the dominance of oil and gas development.

Lithium is a critical mineral for renewable energy technologies, yet Nigeria’s potential remains largely untapped. The country’s mining sector is historically significant but has diminished over the years as oil and gas became predominant. Recently, global demand for lithium has surged, leading to increased prices, which may incentivise investment in local exploration initiatives. Effective mining and exploration strategies are essential for rejuvenating this sector and boosting economic growth.

The Nigerian House of Representatives has highlighted the urgent need for increased funding towards lithium exploration and development, recognising the substantial economic benefits that this could bring. By pushing for enhanced geological surveys and the establishment of dedicated agencies, the House aims to unlock Nigeria’s lithium potential, which is critical amidst a global shift towards renewable energy sources. Acknowledging past mistakes in the oil sector, the government is urged to strategically invest in the lithium industry for sustainable economic growth.

Original Source: punchng.com

The post Nigerian House Advocates for Enhanced Funding in Lithium Exploration first appeared on Nigerian Mining News.