Nigeria is making a decisive shift from raw mineral exports to domestic processing with the impending launch of two lithium plants backed by Chinese investment, Mining Minister Dele Alake announced. The move forms part of a broader strategy to transform the country’s mining sector into a driver of industrialisation, job creation, and technological advancement.
A $600 million (N949.66 billion) lithium processing facility near the Kaduna-Niger border is slated for commissioning this quarter, while a $200 million refinery on the outskirts of Abuja nears completion. Two additional plants in Nasarawa State are expected to begin operations before Q3 2025, further consolidating Nigeria’s position in the global lithium supply chain.
Chinese firms Jiuling Lithium Mining Company and Canmax Technologies have provided over 80% of the funding for the four projects, with Nigerian firm Three Crown Mines holding minority stakes. The developments follow a 2022 geological survey that identified high-grade lithium deposits across multiple states, attracting significant foreign investment.
“We are now focused on turning our mineral wealth into domestic economic value—jobs, technology, and manufacturing,” Alake stated, underscoring Nigeria’s commitment to ending the decades-long practice of exporting unprocessed resources.
The government has introduced sweeping reforms to boost the mining sector, which currently contributes less than 1% to GDP. These include banning unprocessed mineral exports, formalising artisanal mining, and offering investors up to 75% equity in the state-owned mining company. Since April 2023, new mining licenses have been restricted to firms with local processing plans—a policy shift aimed at maximising Nigeria’s solid mineral potential.
Analysts view the lithium plants as a critical test of Nigeria’s ability to leverage its mineral reserves for broader industrial growth, particularly as global demand for battery metals surges. If successful, the strategy could serve as a blueprint for other African nations seeking to move up the mineral value chain.
