By Patience Chat Moses
Every year, nations of the world converge to discuss how to move mining activities forward under the aegis of the Future Minerals Forum (FMF). This year’s forum took place in Riyadh, Saudi Arabia and hosted over 178 countries and 14,000 participants including world leaders and business stakeholders of the mining industry. During this event, the host country announced plans to increase investment in lithium mining and production. As the world’s largest oil exporter diversifies its portfolio to include lithium, a critical component in electric vehicle batteries and renewable energy technologies, business and economic experts say that Nigeria stands poised to capitalize on its own lithium reserves.
At the same event, the Nigerian Government reiterated its commitment to strengthening the nation’s economy through strategic global mining partnerships. Nigeria’s Minister of State for Finance, Dr. Doris Uzoka-Anite who spoke at the event noted that Nigeria’s vast resources and wealth position it to collaborate with international partners to drive economic growth, promote investment, and encourage innovation to establish the country as a leader in the global minerals and energy landscape. Saudis’ announcement and Nigeria’s quest for investors could be met if a partnership is signed.
Nigeria is home to significant lithium deposits, particularly in the states of Nasarawa, Plateau, and Kaduna. According to the Nigerian Geological Survey Agency (NGSA), the country’s lithium reserves are estimated to be around 250,000 metric tons. This puts Nigeria among the top 10 lithium-producing countries in Africa and globally. Despite its vast lithium reserves, Nigeria’s lithium mining industry is still in its infancy. Currently, there are only a handful of lithium mining projects in the country, with most of them still in the exploration phase.
The Nigerian government is taking steps to encourage investment in the sector through initiatives like the establishment of the Nigerian Mining Corporation (NMC) to oversee the development of the country’s mining industry as well as a recent partnership signed with the FG and Chinese mining firm, however, there is more room for investment. The notable display of investment interest by Saudi’s government, according to experts, presents a unique opportunity for Nigeria to partner with a global energy leader. A potential partnership between Saudi and Nigerian lithium mining companies could bring the much-needed investment, technology, and expertise to develop Nigeria’s lithium industry.
According to a report by the International Energy Agency (IEA), the global demand for lithium is expected to increase by 40% by 2025, driven primarily by the growth of the electric vehicle market. A partnership with Saudi Aramco could enable Nigeria to tap into this growing demand and establish itself as a significant player in the global lithium market.
In an Interview with a staff at the Ministry of Mines, Steel Development, Mr Kunle Akanbi, noted that a partnership between Saudi Arabia and Nigeria for lithium mining, production and distribution holds numerous benefits for Nigeria, including; increased investment, which could bring in much-needed capital to develop Nigeria’s lithium industry.
Saudi’s expertise in mining and production could be transferred to Nigerian companies, enabling them to improve their operations and increase efficiency. Also, a partnership could lead to the creation of new jobs in the mining sector, both directly and indirectly. The development of Nigeria’s lithium industry could contribute to the country’s economic growth and diversification.
While a partnership between Saudi Aramco and Nigerian lithium mining companies presents numerous opportunities, some challenges need to be addressed. Nigeria’s regulatory framework for mining needs to be strengthened to attract investment and ensure that mining activities are conducted responsibly and sustainably. Lithium mining can have environmental impacts, such as water pollution and land degradation. Nigerian authorities need to ensure that mining activities are conducted in a way that minimizes these impacts. The need to engage Local communities cannot be overstated either.
Saudi’s investment in lithium mining and production presents a unique opportunity for Nigeria to develop its own lithium industry. A potential partnership between Saudi Aramco and Nigerian lithium mining companies could bring the much-needed investment, technology, and expertise to develop Nigeria’s lithium reserves.