$1.3 Billion Chinese Lithium Flood: Nigeria’s Solid Minerals Sector Booms from ‘Mine to Market’ Policy.
The Investment Surge: $1.3 Billion in Lithium Processing
Minister of Solid Minerals Development, Dr. Dele Alake, has disclosed that Chinese firms have invested over $1.3 billion in Nigeria’s lithium processing sector since the current administration took office in September 2023. This massive capital injection, focused on value addition rather than raw export, marks a major milestone in the country’s economic diversification strategy.
Key Investors and Strategic Benefits
The Chinese companies named by the Minister that have made these substantial investments include:
Canmax Technology
Jiuling Lithium
Avatar New Energy Nigeria Company
Asba
These investments are strategically aligned with Nigeria’s goal to become a global player in the clean energy value chain. Alake highlighted the core benefits:
Economic Diversification: Reducing Nigeria’s over-reliance on the oil sector.
Technology Transfer: Attracting infrastructure, expertise, and enhancing local capabilities and skills through joint ventures.
Industrial Growth: Laying the foundation for local manufacturing and job creation.
The Impact of ‘Mine to Market’ Policy
The policy mandating the local processing of minerals before export is the key driver behind the recent surge in both investment and government revenue.
Revenue Explosion
The solid minerals sector has demonstrated extraordinary growth due to the new policy and reforms:
2024 Revenue: The sector generated over N38 billion.
Growth Rate: This is a six-fold increase from the N6 billion generated in the previous year (2023).
Major Lithium Projects Underway
The Chinese capital is rapidly translating into physical infrastructure:
A $600 million processing plant is nearing completion near the Kaduna-Niger border.
A $200 million refinery is also close to completion outside Abuja.
Two additional processing plants in Nasarawa State are slated for commissioning before the third quarter of 2025.
Government Reforms to Attract Global Investors
To sustain this momentum and secure Nigeria’s position as a major mining destination, the Ministry has introduced comprehensive structural and security reforms:
Security Measures: The establishment of Mining Marshals and a satellite monitoring system to curb the pervasive issue of illegal mining and protect licensed operators.
Transparency and Efficiency: Deployment of digital systems, including the Electronic Mining Cadastre (eMC+) for faster licence processing and the Nigerian Mineral Resources Decision System (NMRDS) for mineral information.
Investment in Data: The Federal Government has allocated N1 trillion for mineral exploration this year to generate internationally certified geological data that can de-risk investment.
Licence Clean-Up: To sanitize the sector, the government revoked 924 inactive mining licences in May 2024 and plans to cancel an additional 1,000 dormant permits.
As Chairman of the Africa Minerals Strategy Group (AMSG), Dr. Alake also pledged Nigeria’s commitment to continental collaboration to ensure Africa collectively builds the necessary systems to fully benefit from its mineral endowments.
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