The Federal Government of Nigeria has announced plans to establish six Mineral centres across the six geo-political zones of the country. This move aims to boost the Mining sector and promote economic diversification. The Minister of Solid Minerals Development, Dr. Dele Alake, disclosed this plan, which is part of President Bola Tinubu’s administration’s commitment to developing key sectors like the solid minerals industry. The centres will focus on promoting value addition to minerals, generating multiplier effects on the economy.
Nigeria’s mineral resources are spread across the country. Because of this, it is essential to decentralize mineral processing centres. According to the minister, “We have our minerals all over the country, and we cannot concentrate the mineral processing centres in one area. As we speak, those plans are ongoing in the zones.” This decentralized approach will ensure that the benefits of mining are felt across the country. It will create jobs and stimulate local economies.
New policy developed to derive maximum value.
Meanwhile, the government has developed a new policy to ensure Nigeria derives maximum value from extracted minerals. In the past, Investors extracted raw mineral resources without adding value, resulting in so much economic losses. The minister lamented that Lithium is one of the finest qualities in the world, and it has other associated minerals like nickel, cobalt, and copper. “So when an operator takes an ounce of the nation’s lithium out of the country, perhaps he declares lithium. But when he gets to his host country, he now has other associated minerals to his gain and the loss of Nigeria.”
Again, this loss is estimated to be in the billions of dollars, which could have been retained in the country if value addition had been done locally. The new policy requires investors to provide a concrete plan for local value addition, processing minerals locally to generate employment, technology, and skills transfer. This move aligns with plans to produce Electric Vehicle (EVs) batteries in Nigeria, leveraging the country’s lithium resources. The local value addition policy has been accepted by other African countries to develop their local economies. This collaborative approach will enable Nigeria to tap into the global demand for lithium-ion batteries, which is projected to grow exponentially in the coming years.
Manual approach poses health risks to miners.
As well, Nigeria has the potential to lead lithium-ion battery Manufacturing in Africa, with over 3,000 lithium pegmatite bodies discovered. The government plans to establish an indigenous lithium battery factory, reducing dependency on foreign production and fostering local manufacturing of vital energy storage components. This initiative will not only create jobs but also reduce the country’s reliance on imported batteries, conserving foreign exchange earnings. The mining industry in Nigeria is vast and diverse, with over 44 different types of minerals, including lithium ore, which is one of the abundant industrial minerals.
Lithium deposits are found in Kogi, Nasarawa, Ekiti, Kwara, Cross River, Oyo, Plateau, and other states. However, the country currently lacks mining and processing facilities for lithium, with mining sites using direct human labour. This manual approach is not only inefficient but also poses health risks to the miners. The government aims to stimulate Investment in local mining, beneficiation, and utilization of Nigerian lithium ores through favourable regulations, including Subsidies and Tax rebates. This initiative could drive research and development of made-in-Nigeria lithium-ion batteries for local consumption and potential export. The government is committed to providing an enabling environment for investors to thrive, and the establishment of mineral centres is a step in the right direction.
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In addition to lithium, Nigeria is endowed with other minerals like iron ore, coal, and gold. The country has a long history of mining, dating back to the pre-colonial era. However, the industry has faced numerous challenges, including lack of infrastructure, inadequate regulation, and corruption. The government is working to address these challenges and create a conducive environment for mining to flourish. The establishment of mineral centres and the new mining policy demonstrate the government’s commitment to developing the mining industry and promoting Economic Growth in Nigeria. This move has the potential to create jobs, stimulate local economies, and reduce the country’s reliance on imported goods.