Nigeria’s lithium rush accelerates as strategic mineral attracts global investors

Nigeria is steadily emerging as one of Africa’s most promising lithium frontiers, with growing investor interest in the strategic mineral raising expectations that the country could unlock billions of dollars in export earnings, attract fresh industrial investments and accelerate its transition from an oil-dependent economy to a diversified mining powerhouse.

Industry analysts, speaking with BusinessDay on Monday, estimate that, if Nigeria develops a fully integrated lithium value chain—from exploration and mining to refining and battery component manufacturing—the country could realise several billions of dollars annually in export revenues over the long term.

Global demand for lithium is projected to increase sharply over the next two decades as electric vehicle production, renewable energy storage and consumer electronics continue to expand.

According to the International Energy Agency, demand for lithium could grow by more than 40 times by 2040 under ambitious global clean-energy scenarios, placing countries with commercially viable deposits in a strategic position to benefit from the energy transition.

Geological experts say Nigeria’s lithium resources, largely concentrated within the Nigerian Basement Complex, present a significant opportunity to diversify government revenue, generate employment, attract foreign direct investment and boost non-oil exports, provided exploration, value addition and regulatory oversight are effectively managed.

Lithium, often referred to as the “white gold” of the clean energy transition, has become one of the world’s most valuable strategic minerals because of its critical role in the manufacture of rechargeable batteries used in electric vehicles, smartphones, laptops, energy storage systems and other electronic devices.

Unlike fossil fuels, whose long-term demand is expected to decline as countries adopt cleaner energy sources, lithium demand is forecast to remain on an upward trajectory as governments and manufacturers invest heavily in battery technologies.

Nigeria’s known lithium occurrences are predominantly found in rare-metal pegmatites—coarse-grained igneous rocks formed during the final stages of magma crystallisation millions of years ago. These pegmatites are naturally enriched with lithium-bearing minerals alongside other valuable rare metals, making them attractive targets for commercial mining and mineral exploration.

Umaru Ibrahim, an industry player based in the commercial city of Kano, said Nigeria’s geological setting positions it among Africa’s emerging destinations for critical mineral development at a time when global competition for battery minerals is intensifying.

The country’s most prospective lithium belts are concentrated in the North-Central and South-West geopolitical zones, although occurrences have also been identified in several other states.

Nasarawa State hosts significant deposits around Keffi, Kokona, Nasarawa-Eggon and Wamba. In Ekiti State, lithium mineralisation has been identified in Ijero-Ekiti, Ido-Osi, Aramoko-Ekiti and Ikole-Ekiti.

Other notable occurrences are found in Kwara State, particularly around Share, Ifelodun, Oke-Onigbin and Kaiama, while Kogi State has identified deposits in Egbe, Okoloke, Kabba and Isanlu.

Kaduna State also ranks among the country’s major lithium-bearing states, with occurrences reported in Kachia, Kagarko, Birnin Gwari and Jema’a. Additional deposits have been documented in Niger State, including Suleja, Shiroro, Minna and Borgu, as well as in Oyo State around Iseyin, Saki, Igbeti and Olorunsogo.

Geologists say the most economically viable lithium resources are associated with pegmatite belts that cut across the Nigerian Basement Complex, where continued exploration has revealed promising mineralisation.

The principal lithium-bearing minerals identified in Nigeria include spodumene, lepidolite, petalite and amblygonite. These minerals are recognised globally as important commercial sources of lithium and are processed into battery-grade materials used in electric vehicles and other high-technology industries.

Olufemi John, a business analyst based in Kaduna, said Nigeria’s expanding profile in the critical minerals sector presents an opportunity to attract substantial foreign direct investment, create thousands of jobs and significantly increase export earnings. He, however, cautioned that the country would derive only a fraction of the potential value if it continues exporting raw ore rather than developing domestic processing capacity.

John notes that while raw lithium ore commands relatively modest prices in international markets, refined lithium chemicals and battery-grade materials are worth several times more, highlighting the economic importance of establishing local refineries and downstream manufacturing industries.

Experts have therefore called for sustained investments in lithium refining plants, battery component manufacturing, research and development, power infrastructure and transport networks to enable Nigeria capture a larger share of the global battery value chain.

They also emphasised the need for stronger environmental safeguards, transparent licensing procedures and responsible mining practices to ensure lithium development benefits host communities while minimising ecological degradation.

With international demand for battery minerals expected to remain robust over the coming decades, stakeholders believe Nigeria’s abundant lithium resources could become one of the country’s most valuable solid mineral assets, contributing significantly to economic diversification, industrialisation, foreign exchange earnings and government revenue.

As governments and manufacturers around the world compete to secure reliable supplies of critical minerals, Nigeria’s expanding lithium resources are increasingly being viewed as a strategic national asset. Industry players maintain that sustained geological exploration, transparent regulation and aggressive investment in downstream processing will determine whether the country successfully transforms its vast lithium potential into a multi-billion-dollar industry capable of reshaping the nation’s economic future.