The House of Representatives also tasked its committee with conducting an investigative audit of the Solid Minerals Development Fund (SMDF) account from 2015 to date, amid a call for a lithium agency.
Amidst global interest in Nigeria’s lithium resource, the House of Representatives has called on the ministry of solid minerals development to establish an agency in line with the Minerals and Mining Act of 2007.
The proposed agency, lawmakers said, would spearhead the creation of a vertically integrated lithium industry, develop a roadmap for infrastructure, and establish a legal framework that links mining approvals with downstream investments.
The House also urged the ministry to seek increased funding for the Nigerian Geological Survey Agency (NGSA) to enable it conduct detailed mineral site mapping and high-resolution airborne surveys, including radiometric and electromagnetic surveys, to accurately estimate the quantity of lithium deposits in the country.
These decisions arose from a motion, presented by Rep. Victor Obuzor (PDP Rivers) at plenary on Wednesday. The motion highlighted the critical role of lithium in driving the global clean energy transition. “Lithium, a reactive metal, is essential for producing energy-dense rechargeable batteries used in portable devices, electric vehicles, and grid storage solutions,” Obuzor noted.
Unlocking Nigeria’s lithium potential
Obuzor pointed out that Nigeria is endowed with vast mineral resources, including lithium-bearing minerals found in states such as Nasarawa, Kogi, Kwara, Ekiti, Cross River, Ogun, and Plateau. Despite this wealth, the country’s mining sector remains significantly underdeveloped, he lamented.
Mining, which was once a major contributor to Nigeria’s economy, accounting for 4-5 percent of GDP in the mid-20th century, has declined sharply, now contributing less than 0.8 percent of GDP far below Africa’s average of 5 percent. Obuzor attributed this decline to the country’s over-reliance on oil and gas since the discovery of the black gold.
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He also expressed concern over missed opportunities in the lithium value chain, drawing parallels with Nigeria’s mismanagement of its oil and gas resources. According to Obuzor, exploratory samples in the country have revealed lithium oxide content as high as 13 percent, far exceeding the global average of 1-2 percent. Despite this promising data, lithium exploration in Nigeria remains underfunded, limiting the sector’s ability to achieve its full potential.
Global demand and economic viability
Obuzor emphasised the economic potential of lithium, citing the International Energy Agency’s (IEA) prediction that global demand for lithium could increase 13-fold by 2040. He noted the dramatic surge in lithium prices, with high-quality lithium carbonate rising from $5,180 per metric ton in 2010 to $46,000 in 2023, after peaking at $68,100 in 2022. “These price trends have made previously overlooked deposits economically viable,” he said, warning that Nigeria risks losing out on significant economic opportunities if the sector remains neglected.
Investigative audit and legislative actions
The lawmaker also raised concerns over the Solid Minerals Development Fund (SMDF), which was established to catalyse private sector investments in mining. He lamented that the fund has yet to make significant investments in lithium mining.
To address this, the House mandated its committee on solid minerals development to conduct an investigative audit of the SMDF’s account from 2015 to date. The committee is expected to submit its findings within four weeks for further legislative action.
South Africa’s interest in Nigeria’s lithium
President Cyril Ramaphosa has expressed South Africa’s willingness to partner with Nigeria in harnessing critical minerals, particularly lithium, to advance the green energy transition and support the production of electric vehicle (EV) batteries.
Speaking on Tuesday at the Nigeria-South Africa Business Roundtable in Cape Town, he emphasised the potential of Nigeria’s abundant lithium reserves as a foundation for industrializing the EV sector.
Ramaphosa called on the private sector and development finance institutions to collaborate in developing infrastructure and scaling up manufacturing capabilities in this critical industry. “There is significant potential for cooperation in pharmaceuticals as well,” he said, adding, “our two countries are strategically positioned to capitalise on the rapid expansion of clean energy manufacturing industries.”
STAR Check: Nigerians, particularly, constituents of Ahoada West/Ogba-Egbema/Ndoni Federal Constituency, can keep tabs on the legislative performance of Rep. Obuzor throughout the 10th House here
