The House of Representatives has tasked the Ministry of Solid Minerals Development to request increased funding for the Nigerian Geological Survey Agency (NGSA) to enable it to carry out mineral site mapping and high-resolution airborne surveys, including radiometric and electromagnetic surveys, to accurately determine the quantity of lithium deposits in Nigeria.
This follows the adoption of a motion on the “Need to Upscale the Lithium Industry and Value Chain as a Catalyst to Drive Energy for Sufficiency and Economic Growth”, moved by Mr Victor Obuzor, at plenary.
The lower chamber mandated the Committee on Solid Minerals Development to carry out an investigative audit of the Solid Minerals Development Fund account from 2015 to date.
Leading the debate on the motion, Mr. Obuzor urged the Ministry of Solid Minerals Development to cause the creation of the Nigerian Lithium Production Agency in line with Part II Section 4(P) of the Nigerian Minerals and Mining Act 2007, with the mandate to develop a vertically integrated lithium industry; create a roadmap for developing the infrastructure required by potential lithium mines in Nigeria and design the regulatory and legal framework governing the sector.
He said that 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 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.
The House expressed concerns 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 said.
He noted that the House was worried that the country is facing a pivotal moment in its mining history due to rising global demand for renewable energy but is repeating past mistakes in the oil and gas sector by focusing solely on the upstream value chain, losing the opportunities that come with operating in the downstream segments.
He said that the price of high-quality lithium carbonate increased from $5,180 in 2010 to $46,000 in 2023 (with a peak of $68,100 In 2022), making previously abandoned deposits economically viable.
“The IEA predicts global demand could rise 13 times by 2040; 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.
