By Aliyu Nasir
The Nigerian government has finalized a $1.3 billion deal with investors to establish two lithium processing plants by mid-2025, signaling renewed confidence in Africa’s largest oil producer due to recent economic reforms.
The investment is led by The African Finance Corporation (AFC) and the Solid Minerals Development Fund (SMDF).
Lithium, a key component in batteries, glass, and aluminum production, is predominantly mined in Australia and Chile. The project is expected to generate $1.2 billion annually, contribute $25 billion over its lifespan, and provide $8 billion in foreign exchange earnings.
“This investment validates our reforms and aligns with SMDF and AFC’s goal of boosting private-sector-led mining ventures,” said Dele Alake, Nigeria’s solid minerals minister.
He also announced the Nigerian Mining Company (NMC), a public-private venture with 50% private ownership to ensure efficiency.
Alake lamented Nigeria’s historical underinvestment in solid minerals, noting that smaller African nations like Senegal and Côte d’Ivoire outspent Nigeria on exploration.
“Our over-reliance on oil led us to neglect sectors like mining and agriculture,” he admitted.
The reforms have already created 27,000 jobs for artisanal miners, and Nigeria’s Community Development Agreement (CDA) model is being adopted by other African countries, including South Africa.
Nonye Ayeni, CEO of the Nigerian Export Promotion Council (NEPC), emphasized the need to harness minerals like lithium, zinc, and gemstones for export.
She announced a new Solid Minerals Department to support value addition and financing for miners but acknowledged infrastructure and regulatory challenges.
Janet Adeyemi of the Women Miners Association urged stricter enforcement of environmental regulations, including mandatory Environmental Impact Assessments (EIAs) and ESG reporting.
“Investors prefer countries with strong legal safeguards,” she noted.
Business confidence in Nigeria has risen for three consecutive months in 2025, per the NESG-Stanbic IBTC index, reflecting optimism about ongoing reforms.
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