Despite holding one of the world’s largest lithium deposits, Nigerian investors appear to have been sidelined in the mining and processing of the mineral across the country.
Lithium (Li), a critical component in renewable energy technologies, electric vehicles (EVs), and energy storage systems, has become a cornerstone of the global clean energy transition. As nations shift away from fossil fuels, Nigeria’s lithium reserves—estimated at over $34 billion—are now regarded as a strategic resource for driving sustainable economic growth.
Globally, the lithium industry generates an estimated $92 billion annually, with Nigeria’s deposits located mainly in Nasarawa, Kaduna, Niger, Kwara, Kogi, and Ekiti States. However, Chinese-led foreign firms currently dominate Nigeria’s lithium sector. According to sources at the Ministry of Solid Minerals, companies such as Avatar and Ganfeng have established large-scale operations, with processing facilities boasting capacities of 4,000 and 6,000 metric tons per day, respectively.
Most of the extracted lithium is reportedly shipped to EV battery manufacturers in China, India, South Korea, and Japan, with limited processing or value addition occurring within Nigeria.
Industry experts argue that the nation can only truly benefit from the lithium boom if local participation increases and if the Solid Minerals Value-Chain Regulations—which promote in-country processing—are fully enforced.
Why Local Investors Are Absent
Dr. Muda Yusuf, Executive Director of the Centre for the Promotion of Private Enterprise (CPPE), emphasized that Nigeria’s lithium industry remains underdeveloped due to limited awareness and investment capacity among local players.
“It’s all about investment and strategy,” Yusuf said. “We don’t have many domestic investors in that space because few understand the industry or are willing to take the risk. The government needs to invest in geological data, de-risk the sector, and create confidence for both local and foreign investors.”
He also linked insecurity in mineral-rich regions to illegal mining, which discourages legitimate investors.
Calls for a Supportive Business Environment
‘Dele Ayanleke, National President of the Miners Association of Nigeria (MAN), described lithium’s emergence as a positive development but urged the government to make the business environment more conducive.
He called for streamlined regulatory frameworks and greater collaboration between federal and state governments. “Foreign investors shouldn’t be allowed to own 100 percent of mining operations,” he warned. “We must empower local investors through incentives and build their capacity to compete.”
Ayanleke also encouraged financial institutions to study and support mining ventures, noting that “lack of industry knowledge” prevents banks from funding mining projects.
Nasarawa Leads the Way
According to Samuel Agya, Special Adviser to the Nasarawa State Governor on Mining and Solid Minerals, the state currently hosts Nigeria’s largest lithium processing plants.
He explained that the Avatar plant has already begun operations, while the $200 million Ganfeng facility—one of the largest in West Africa—is near completion. Agya called on the federal government to deregulate the solid minerals sector, allowing states greater control to curb illegal mining and promote responsible development.
Federal Government’s Position
A senior official in the Ministry of Solid Minerals Development, however, disclosed that there is currently no specific federal policy on lithium investment.
“Lithium is treated like any other mineral,” the source said. “There’s no distinct government policy for it.