Federal government commences search for foreign investors in the burgeoning lithium industry

NIGERIA'S federal government has launched an ambitious search for foreign investors willing to pump money into the country's burgeoning lithium industry which has been described by market watchers as the new oil sector.

Apparently, Nigeria is sitting on hundreds of tonnes of raw lithium and the federal government needs foreign investors with the deep pockets and technical expertise to develop the sector. France and Nigeria signed a memorandum of understanding at the end of 2024 to carry out mining projects, notably lithium.

For now, foreign investment is limited to Chinese companies, such as Avatar and Ganfeng, who have set up local plants to transform raw rock into lithium oxide before sending it on to Chinese plants. However, the Nigerian government is rightly looking for plants to be built locally, so the country can export finished products.

Uba Saidu Malami, president of the Geological Society of Nigeria, said the Chinese will sometimes seek to move in before sufficient exploration work has been done regarding site viability. He added: “There is a need for detailed exploration work to ascertain the reserves of lithium in those areas.

"The Chinese are cowboys when it comes to mining. They move the excavator and just expand that physical extraction, which is not smart mining in these days of sustainable practice and environmental sensitivity.”

Industry analyst Charles Asiegbu, added that apart from associated environmental risks, artisanal lithium mining can stoke local conflict. He said: “It can happen between communities where there’s a disagreement on where the resource is actually located.

“It could also happen between communities and exploration companies. We have seen situations where companies or expatriates are attacked and you know, even kidnapped by community members who feel that they have not gotten the relevant reparations or royalty or whatever.”

In addition, Mr Asiegbu pointed out that organised armed groups also take advantage of a lack of government presence in some areas to illegally extract these resources. Across Nigeria, particularly in Nasarawa State, work continues, even during the rainy season which can bring a frequent risk of landslides that can prove fatal.