Nigeria’s $34bn lithium reserves in demand amid global rush

|Published 12:20 PM ET, Saturday February 22, 2025|

Nigeria is poised to become a significant player in the global lithium market thanks to its vast reserves—estimated at around $34 billion in value. This opportunity comes at a time when global demand for lithium is skyrocketing, primarily driven by the rapid expansion of electric vehicles (EVs) and renewable energy storage systems.

Strategic Importance in the Global Energy Transition

Lithium is a critical component in lithium-ion batteries, which are central to the clean energy revolution. As major economies such as the United States, China, and the European Union push aggressively toward net-zero emissions, securing a stable supply of this key raw material becomes essential. Analysts project that the global lithium market could grow exponentially over the next decade, driven by these shifting energy paradigms.

Nigeria’s Economic Opportunity

Nigeria’s significant lithium deposits—found in states like Plateau, Oyo, and Kaduna—offer the country an opportunity to diversify its economy beyond oil. The government has already made strides by inaugurating lithium factories, with plans underway for additional facilities. This proactive approach could transform Nigeria from a resource-rich nation into a major supplier in a high-demand, high-growth global market.

By streamlining regulatory processes and offering incentives to both local and international investors, Nigeria can attract the necessary expertise and capital. If managed effectively, these measures not only promise to boost the nation’s economy but also enhance its geopolitical influence in the renewable energy sector.

Challenges and the Need for Sustainable Practices

However, the lithium boom is not without its challenges. Reports have highlighted issues such as illegal mining operations and labor concerns—including instances of child labor and environmental degradation—especially in regions where regulations are lax. These challenges underscore the need for Nigeria to adopt robust, forward-thinking policies that promote sustainable mining practices. Strengthening oversight and creating a “one-stop shop” for mining permits could help attract responsible investments while safeguarding local communities and the environment.

A Forward-Thinking Path Forward

To truly capitalize on its lithium reserves, Nigeria must:

Modernize Regulatory Frameworks: Simplify licensing processes and enforce stringent environmental and labor standards.

Foster Sustainable Partnerships: Encourage collaborations that bring in technology transfer and responsible mining practices.

Invest in Local Capacity: Provide education and training for local communities to ensure that the economic benefits of lithium mining are equitably distributed.

Ensure Ethical Practices: Implement measures to eliminate illegal mining and mitigate social issues, thereby reinforcing Nigeria’s commitment to sustainable development.