While the world races toward a clean-energy future powered by lithium batteries, Nigeria—home to one of the largest lithium deposits in Africa—finds itself watching from the sidelines as foreign companies dominate extraction and profits.
Lithium, often called the oil of the new economy, fuels the global electric vehicle and renewable energy revolution. Yet, despite Nigeria’s massive reserves—valued at over $34 billion—the nation remains a raw material supplier, with local investors largely absent from the booming industry now valued globally at $92 billion annually.
Foreign Firms Take the Lead
Across Nigeria’s lithium-rich states—Nasarawa, Kaduna, Niger, Kwara, Kogi, and Ekiti—Chinese corporations have rapidly taken control of mining and processing operations.
Two firms, Avatar and Ganfeng, have emerged as the main players. Avatar operates a 4,000-metric-ton-per-day plant, while Ganfeng’s $200 million lithium facility, one of West Africa’s largest, nears completion in Nasarawa State.
Most of the mined lithium is shipped overseas to Asia’s major industrial hubs—China, India, South Korea, and Japan—where it is refined into EV batteries and storage systems. The result: Nigeria exports potential wealth instead of creating local value through processing, job creation, and technological innovation.
Local Investors Shut Out
Despite the resource abundance, no major Nigerian investor has made a significant impact in the lithium sector. Only small-scale artisanal miners are visible—lacking capital, equipment, and technical expertise to compete.
Dr. Muda Yusuf, Executive Director of the Centre for the Promotion of Private Enterprise (CPPE), said the absence of local players stems from limited awareness and inadequate government support.
“We lack the investment readiness needed to participate meaningfully,” Yusuf explained. “Without proper geological data, infrastructure, and policy incentives, domestic investors can’t take the risk.”
He emphasized that government must invest in bankable geological research and improve security in mining regions, noting that insecurity and illegal mining discourage serious investors.
A Call for Policy Reform
Experts warn that unless the Solid Minerals Value-Chain Policy is enforced and expanded, Nigeria will continue to lose out on the full economic benefits of its mineral wealth.
‘Dele Ayanleke, President of the Miners Association of Nigeria (MAN), urged authorities to revise mining laws to give state governments a stronger role and ensure local participation.
“Foreign investors shouldn’t own 100% of our mining operations,” Ayanleke said. “In countries like China, foreign companies are restricted from full ownership. We must protect our national interest.”
He called for tax incentives, financing programs, and training for indigenous operators to enable them to compete globally.
Nasarawa Sets the Pace
Nasarawa State has positioned itself as Nigeria’s emerging lithium hub. With Governor Abdullahi Sule spearheading industrial reforms, the state has attracted large-scale processing investments.
According to Samuel Agya, the governor’s Special Adviser on Mining, the state hosts both Avatar and Ganfeng lithium processing plants—one already operational and the other nearing completion.
“Lithium mining was in obscurity before this administration,” Agya noted. “Today, we are attracting global attention and driving Nigeria’s green energy potential.”
He, however, echoed calls for the federal government to decentralize mining authority, allowing states to regulate local operations and curb illegal exports.
Federal Silence on Strategy
Despite lithium’s global strategic importance, a senior official at the Ministry of Solid Minerals Development revealed that no specific national policy exists for lithium investment or processing.
“Lithium is treated like every other mineral,” the source admitted. “There’s no tailored framework or policy to guide its development.”
This lack of direction, analysts warn, could leave Nigeria trapped in a familiar cycle—exporting raw resources while importing finished products at higher costs.
The Road Ahead
With the global energy transition accelerating, lithium is fast becoming the backbone of modern economies. For Nigeria, the challenge is not geological—it’s strategic. Unless policy clarity, local investment, and technological partnerships are prioritized, the nation risks losing yet another opportunity to turn its vast natural wealth into sustainable national prosperity.
