The House of Representatives has called on the Ministry of Solid Minerals Development to request increased funding for the Nigerian Geological Survey Agency (NGSA) to enhance mineral mapping and accurately estimate Nigeria’s lithium deposits to increase revenue generation.
This resolution followed the adoption of a motion titled “Need to Upscale the Lithium Industry and Value Chain as a Catalyst to Drive Energy Sufficiency and Economic Growth” moved by Rep. Victor Obuzor (PDP-Rivers) during plenary
The move aims to enable NGSA to conduct radiometric and electromagnetic surveys to determine the volume of lithium deposits, ultimately boosting revenue generation in Nigeria.
Obuzor noted Nigeria possesses abundant mineral resources, including metallic ores and gemstones, but its mining sector remains underdeveloped.
“The House Notes that Nigeria’s vast mineral resources, including metallic ore, energy, industry, construction, and gemstones, are deposited across various geological groups, yet the mining sector remains underdeveloped.
Mining was a major contributor to the economy in the 1900s, reaching a peak in the 1950s at roughly 4-5% of GDP, however, the industry declined as a result of the discovery of oil and gas, currently, mining accounts for less than 0.8% of GDP, which is much less than the average of almost 5% for the continent,” he stated.
Creation of lithium agency
The motion also advocates for creating a Nigerian Lithium Production Agency in line with Part II Section 4(P) of the Nigerian Minerals and Mining Act 2007.
The agency would develop a lithium industry, infrastructure, and regulatory framework.
Mr. Obuzor stressed the framework aims to establish a lithium value chain policy that links mining approvals to significant investments in midstream and downstream segments of the value chain.
The significance of Lithium in clean energy
Mr. Obuzor underscored lithium’s pivotal role in advancing global clean energy initiatives, highlighting its use in energy-dense rechargeable batteries.
“Lithium, a reactive metal, is utilised in energy-dense rechargeable batteries, which are crucial for the global clean energy transition. These lightweight compact batteries store more energy per volume, making them ideal for portable devices and grid storage.”
He expressed concerns over the lack of comprehensive data on Nigeria’s lithium reserves, despite significant discoveries across several states, including Nasarawa, Kogi, Kwara, Ekiti, Cross River, Ogun, and Plateau.
“Concerned that there is no definitive estimate of the country’s lithium reserves, despite exploration surveys commissioned by the Ministry of Solid Minerals Development under the National Integrated Mineral Exploration Project (NIMEP). Significant lithium-bearing minerals have, however, been discovered in Nasarawa, Kogi, Kwara, Ekiti, Cross River, Ogun, and Plateau States,” he noted.
Obuzor highlighted the immense economic opportunities lithium offers, citing its skyrocketing value in recent years.
He revealed that the price of high-quality lithium carbonate had surged from $5,180 in 2010 to $46,000 in 2023, peaking at $68,100 in 2022.
“The IEA predicts global demand could rise 13 times by 2040,” he stated.
Concerns over funding
The motion expressed alarm over Nigeria’s missed opportunities in the lithium value chain due to inadequate funding and underdevelopment in midstream and downstream segments
“Alarmed that despite an estimated $700 billion worth of mining potential, lithium exploration in Nigeria remains poorly funded, with only a fraction of projects reaching full potential due to challenges in project design, construction, and production
According to the Nigerian Geological Survey Agency (NGSA), exploratory samples showed promise, with minerals containing up to 13% lithium oxide content, while the global average mine ore contains about 1-2% lithium oxide content,” he noted.
“The House was concerned that the Solid Minerals Development Fund (SMDF), a sovereign fund aimed at catalyzing private sector investments in Nigeria’s mining sector, has not made any significant investments in lithium mining.”
Obuzor also criticized the lack of significant investments by the Solid Minerals Development Fund (SMDF), a sovereign fund designed to catalyze private sector investments in mining:
