The House of Representatives has urged the ministry of solid minerals development to focus on lithium production to increase revenue generation in Nigeria.
This was sequel to the adoption of a motion by Rep. Victor Obuzor (PDP-Rivers) at plenary on Wednesday in Abuja.
Moving the motion, Mr Obuzor lamented that in spite of the abundance of mineral deposits nationwide, the mining sector had remained under-developed.
He said that mining, which was a major contributor to the economy in the 1900s, reached its peak in the 1950s, contributing between four per cent and five per cent of GDP.
“However, the industry declined as a result of the discovery of oil and gas. Currently, mining accounts for less than 0.8 per cent of GDP, which is much less than the average of almost five per cent for the continent.
“Lithium, a reactive metal, is utilised in energy-dense rechargeable batteries, which are crucial for the global clean energy transition.
“These lightweight compact batteries store more energy per volume, making them ideal for portable devices and grid storage.
“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.
“Nigeria is facing a pivotal moment in its mining history due to rising global demand for renewable energy.
“However, it 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.
The lawmaker stated that the price of high-quality lithium carbonate increased from $5,180 in 2010 to $46,000 in 2023.
He explained that it had a price peak of $68,100 in 2022, making previously abandoned deposits economically viable.
According to him, the International Energy Agency (IEA) has predicted that global demand could rise 13 times by 2040.
“Alarmed that 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 per cent lithium oxide content, while the global average mine ore contains about 1-2 per cent lithium oxide content.
“It is a matter of concern that the Solid Minerals Development Fund (SMDF), a sovereign fund aimed at catalysing private sector investments in Nigeria’s mining sector, has not made any significant investments in lithium mining,” he said.
The house, therefore, urged the ministry 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.
The green chamber recommended that the mandate should include developing a vertically integrated lithium industry and creating a roadmap for developing the infrastructure required by potential lithium mines in Nigeria.
The legislators said that it should also include design regulatory and legal framework governing the sector, with a view to establishing a lithium value chain policy that linked mining approvals to significant investments in midstream and downstream segments of the value chain.
The House also urged the ministry to request for increased funding of the Nigerian Geological Survey Agency (NGSA) to enable it to carry out mineral site mapping and high-resolution airborne surveys.
The House said that the agency should include radiometric and electromagnetic surveys to accurately determine the quantity of lithium deposits in the country.
(NAN)
