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

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Edo State has surpassed Ogun and Kogi in the mining sector, achieving a production total of 19.4 million tonnes, primarily aided by the Dangote Group’s dominance, which now controls 54.2% of the market. The latest Nigeria Extractive Industries Transparency Initiative (NEITI) audit revealed that a record 2,833 licences were issued in 2023, a significant increase from the previous year, indicating a burgeoning interest in solid mineral operations. Challenges such as inadequate infrastructure, funding, and regulatory issues persist, but the sector saw a 34.4% rise in total production, reaching approximately 95 million tonnes. Regulatory recommendations from NEITI aim to enhance operational transparency and compliance, fostering an investment-friendly mining landscape in Nigeria.

The mining sector in Nigeria has long been overshadowed by oil, with limited government support and policy implementation for minerals. Despite possessing vast reserves of various minerals, including iron ore and gold, the industry faces significant underexploitation. The NEITI audit is crucial as it provides insights into financial flows and identifies obstacles within the sector, shedding light on operational transparency and regulatory compliance necessary for attracting investment.

Edo State’s ascent in the mining sector illustrates a significant shift, driven by increased licensing and production, despite ongoing regulatory and infrastructural challenges. The NEITI audit highlights the necessity for stronger governance to encourage serious investment and address the high incidence of speculative operators. Moving forward, addressing these concerns will be vital for harnessing Nigeria’s solid mineral potential effectively.

Original Source: www.thisdaylive.com

The post Edo State Leads Mining Sector Growth as Dangote Dominates with 54.2% first appeared on Nigerian Mining News.

Edo State has surpassed Ogun and Kogi in the mining sector as the Dangote Group has increased its market control to 54.2%, according to the 2023 Solid Minerals Industry Audit by NEITI. The audit highlights a surge in licences issued, increasing by 114% compared to the previous year. Nigeria possesses substantial mineral reserves, yet remains largely underdeveloped due to challenges such as lack of infrastructure, funding issues, and a weak regulatory framework.

During the audit period, mineral production rose to 95 million tonnes, an increase of 34.4%. Key contributors to this production were major companies like Dangote, BUA, and Lafarge, which collectively produced over 51 million tonnes and paid significant royalties. NEITI emphasises the need for improved monitoring and enforcement within the sector to counteract non-active operators and illegal mining, recommending penalties for non-usage of licences and enhanced governmental support for the mining industry.

The mineral sector in Nigeria, notably overshadowed by oil, is beginning to garner attention as new reports reveal significant activity from companies like the Dangote Group. NEITI’s audit report highlights both the increase in licences and the production of minerals, indicating a shift towards more robust mining operations. However, numerous issues still hamper growth, including inadequate infrastructure and lack of government support, which need addressing to realise Nigeria’s full mineral potential.

The latest NEITI report underscores a pivotal moment for Nigeria’s mining sector, showcasing rising production figures and increased licence issuance. With Dangote’s dominant share and significant contributions from other major companies, there is potential for substantial growth. However, resolving infrastructural deficits and regulatory challenges will be critical in fostering a sustainable mining environment and attracting foreign investment.

Original Source: www.thisdaylive.com

The post Dangote Dominates Nigeria’s Mining Sector with 54.2% Market Share first appeared on Nigerian Mining News.

The Minister of Solid Minerals Development, Dr. Dele Alake, has announced that reforms carried out under the Tinubu administration have renewed investor interest in Nigeria’s mining sector. Speaking at the Nigeria Middle East Investors Expo and Awards, he highlighted the government’s focus on solid minerals, which has attracted global attention and boosted investments and revenues. Dr. Alake outlined the success of the 7-point agenda in tackling illegal mining, with over 300 illegal operators apprehended and 133 facing prosecution. The minister mentioned plans to enhance monitoring through satellite surveillance of mining sites, thus allowing for efficient oversight and rapid response to illicit activities. He encouraged investors to exploit Nigeria’s vast mineral resources, including substantial deposits of talc, iron ore, lead, and zinc identified across various states. Alake introduced the Decision Support System (DSS), an online platform aimed at assisting potential investors with comprehensive information about Nigeria’s solid minerals sector. Alake reaffirmed Nigeria’s potential as a global mining destination, noting the presence of over 44 critical minerals and stressing the importance of data for attracting foreign investment. He concluded with a commitment to significantly boost exploration funding to generate essential data.

In recent years, Nigeria’s mining sector has been targeted for reform to increase investment and improve regulatory frameworks. The focus has shifted towards solid minerals as the government seeks to combat illegal mining, enhance operations, and attract international investors. The introduction of new technology and comprehensive data systems aims to create a conducive environment for capital influx into the sector, which is crucial for national economic development.

The reforms led by Dr. Dele Alake aim to rejuvenate Nigeria’s mining sector, evidenced by increased investor confidence and substantial progress in illegal mining enforcement. With strategic initiatives like satellite monitoring and the DSS platform, the Nigerian government is poised to make informed investment opportunities available to global players, reaffirming the country’s position as a major player in the mining industry.

Original Source: tribuneonlineng.com

The post Reforms Boost Investor Confidence in Nigeria’s Mining Sector first appeared on Nigerian Mining News.