By Charles Pemu ABUJA—Nigeria’s burgeoning lithium industry, home to deposits estimated at over $34 billion and essential for the world’s transition to electric vehicles (EVs) and renewable energy, is being overwhelmingly dominated by China-led foreign interests, effectively sidelining Nigerian investors.
As the global lithium market surges—with an estimated annual revenue of $92 billion—Nigeria’s resources are now classified as strategic, yet local participation remains minimal, limited primarily to artisanal miners. Sources within the Solid Minerals Ministry confirmed that foreign interests, particularly from China, have secured the lead in exploiting the strategic assets across the North Central region, which hosts more than 70 per cent of the nation’s proven reserves.
Foreign firms have moved swiftly into the processing phase, ensuring value addition happens under their control. Chinese company, Avatar, has an operational facility with an installed capacity of 4,000 metric tons per day. Similarly, Ganfeng, another Chinese firm, is nearing commissioning of its $200 million, 6,000 MT facility, poised to become one of West Africa’s largest lithium factories.
The bulk of the extracted lithium is currently being shipped to Asian industrial centers, including Shenzhen and Guangdong in China, Seoul in South Korea, and Osaka in Japan, fueling EV battery manufacturing abroad.
Hurdles Blocking Domestic Capital
Industry experts are cautioning that Nigeria will only realize the full economic benefits of the boom if local investors enter the sector and the government implements value-chain regulations to prevent the export of raw minerals.
Dr. Muda Yusuf, Executive Director of the Centre for the Promotion of Private Enterprises (CPPE), identified three core reasons why domestic investors are scarce:
First, there is a general lack of capacity and awareness among local investors, who are unwilling or unable to take the specialized risk required for the industry. Second, the government has failed to provide bankable geodata—necessary geological information that guides and de-risks upfront investment. Third, the problem of insecurity is crippling confidence, as criminal elements often create security challenges in mineral-producing areas, driving away legitimate investment.
Dr. Yusuf urged the government to expand primary production first and then enforce policies requiring processing, noting that starting with immediate processing mandates would constrain investment.
Miners Warn Against 100% Foreign Ownership
‘Dele Ayanleke, National President of the Miners Association of Nigeria (MAN), strongly advocated for a more attractive business environment for indigenous operators through government incentives and support.
He warned against allowing foreign partners to own mines 100 per cent, stressing that such an arrangement is not permitted in other mining jurisdictions, like China. Ayanleke called on the government to de-risk the sector for local investors and address the regulatory confusion created by the dichotomy between federal and state governments over licensing and land access.
Meanwhile, Nasarawa State, where the largest processing plants are located, is actively wooing investors. Samuel Agya, Special Adviser to the State Governor on Mining, confirmed that the state has worked to attract firms like Avatar and Ganfeng, which are processing lithium to a finished product.
However, the Federal Ministry of Solid Minerals Development provided a less defined view, with a director stating anonymously that the Federal Government has no specific policy on lithium, treating it as a generic mineral despite its global strategic importance.