Nigeria’s Lithium Opportunity: The Need For a Strategic Shift from the Oil Era
The recent discovery of significant lithium deposits in Nigeria offers a new chance to transform the country’s fortunes—if we act wisely. Today,
Nigeria stands at a pivotal moment in its economic and industrial history. After decades of grappling with the booms and busts of crude oil which has been described a mix grill God has given us another chance to prove ourselves as good managers of resources.
This piece traces the discovery of lithium in Nigeria, outlines where it is found, and explains why Nigeria must adopt a completely distinct strategy for lithium mining, learning from the oil sector’s troubled past.
The Discovery of Lithium in Nigeria
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Lithium was officially identified in Nigeria around 2019 when the Nigerian Geological Survey Agency (NGSA), through the National Integrated Mineral Exploration Project (NIMEP), confirmed the presence of high-grade lithium in several parts of the country.
Early discoveries were reported in Kwara State, where officials described the lithium as “high grade”, signaling strong commercial potential. Subsequently, geological surveys uncovered lithium-bearing rocks in numerous other states, and the country soon garnered global attention as demand for lithium surged with the rise of electric vehicles, renewable energy storage, and modern electronics.
Unlike oil—whose initial discovery in Nigeria in the 1950s came at a time when global demand was rising but regulatory and institutional frameworks were weak—lithium has been uncovered at a time when Nigeria can still shape modern, strategic mineral governance.
Where Is Lithium Found in Nigeria?
Lithium deposits in Nigeria are widely distributed across both the North-Central and South-West regions, forming what geologists described as part of a lithium-rich Pegmatite Belt that stretches across hundreds of kilometres.
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Key states where lithium deposits have been confirmed include:
Nasarawa State: Often described as a major hub with spodumene, lepidolite, and amblygonite minerals.
Kwara State: Early high-grade discoveries were made here.
Kogi State:
Known for spodumene and other lithium ores.
Ekiti State: Rich in lithium-bearing lepidolite.
Cross River State :
Reports indicate deposits in parts of the state.
Oyo, Plateau, and Kaduna States: Geological survey work and emerging exploration data show these areas also host notable deposits.
Furthermore, early exploratory work suggests that Nigeria’s lithium ores are high grade, in some cases reaching up to 13% lithium oxide content—a very promising level compared with the global average.
Why Lithium Should Be Treated Differently from Crude Oil
Nigeria’s experience with crude oil has been a sobering lesson. For decades, oil wealth did not translate into widespread economic development—largely due to unregulated extraction, corruption, environmental degradation, and the export of raw resources without value addition. Today, oil still dominates Nigeria’s export earnings, but has left behind fragile institutions and an economy vulnerable to price shocks.
In stark contrast, lithium presents a unique opportunity:
Global Strategic Importance
Lithium is a critical mineral for global energy transition—used in batteries for electric vehicles, renewable energy storage, and consumer electronics. Demand is expected to continue growing as the world decarbonise its energy systems.
Value Addition Over Raw Export
One of the biggest strategic shifts Nigeria must make in the case of Lithium is to prioritise value addition and processing within the country rather than exporting raw lithium. In 2022, the Nigerian government notably rejected a proposal from Tesla (or representatives associated with the company) to simply extract and export raw lithium, insisting instead on local processing and manufacturing of lithium products. A salute the personalities that stood in the gap for that to happen.
This approach directly counters the historical pattern with oil, where Nigeria exported crude and limited refining capability developed domestically.
Avoiding the Resource Curse
Oil wealth in Nigeria has too often fuelled corruption, conflict, and inequality instead of broad-based growth. With lithium now ready to be on course ,there is an urgent need for robust regulatory frameworks, transparent licensing, strict environmental standards, and community benefits agreements, ensuring local people benefit from mining activities.
. Encouraging Local Investment and Technology Transfer
Unlike the dominance of multinational oil firms during Nigeria’s oil boom, there is a chance to ensure Nigerian investors, engineers, and technicians play a leading role in the lithium value chain. This means training, capacity building, and incentives for domestic firms, not simply relying on foreign multinationals to extract and leave.
Making It Work:
A Call for Strategic Governance
To harness Nigeria’s lithium potential fully and sustainably:
In this case of Lithium, Nigeria must
Map out and quantify reserves transparently to attract ethical investors;
Enforce strict environmental controls to prevent degradation and protect local ecosystems;
We must implement clear policies on value addition, requiring processing and manufacturing to occur within Nigeria,
Strengthen institutions to avoid corruption and mismanagement that plagued the oil sector.
With these safeguards, lithium can become a pillar of economic diversification, create jobs, and re – position Nigeria as a leader in the global battery and clean energy industries—not just a supplier of raw materials.
Conclusion
Nigeria’s discovery of lithium is more than just a mineral find—it is a historic opportunity to reshape our economic destiny. But this time, the mistakes of the past cannot be repeated. By learning from the oil sector’s history and committing to value-driven, transparent, and locally inclusive policies, Nigeria can ensure that this “white gold” delivers broad-based prosperity and sustainable development for generations to come
Policy Brief / Executive Summary
1. Strategic Context
Nigeria has entered a new phase of resource development with the discovery of commercially viable lithium deposits across several states, notably Nasarawa, Kwara, Kogi, Ekiti, Cross River, Plateau, Kaduna, and Oyo.
This discovery aligns with the global energy transition, where lithium has become a critical strategic mineral for electric vehicles, renewable energy storage, electronics, and clean technology.
Nigeria now faces a defining policy choice:
Repeat the crude oil experience—or build a modern, sustainable mineral economy.
Why Lithium Must Be Treated Differently from Oil
The oil sector created wealth but also produced:
Over-dependence on one resource
Weak industrial diversification
Environmental degradation
Governance and corruption challenges
Limited local value addition.
The discovery of
Lithium in commercial quantity offers Nigeria the chance to reset this model by embedding sustainability, transparency, and domestic industrial growth from the start.
3. Key Policy Priorities
A. Value-Addition First Strategy
Ban or heavily restrict raw lithium exports.
Mandate local processing, refining, and manufacturing.
Promote lithium battery, EV components, and energy storage industries within Nigeria.
B. Strong Governance Framework
Transparent licensing and contract processes.
Independent oversight and public disclosure mechanisms.
Clear fiscal regime for mining revenues.
C. Local Content & Industrial Development
Incentivize Nigerian participation across the value chain.
Invest in technical training, research, and innovation hubs.
Encourage technology transfer from foreign partners.
D. Environmental & Community Protection
Enforce strict environmental impact standards.
Implement community development agreements.
Guarantee host communities direct economic benefits.
E. Economic Diversification & Global Positioning
Integrate lithium development into Nigeria’s industrial, climate, and energy strategies.
Position Nigeria as a regional battery manufacturing hub for Africa.
4. Expected Outcomes
If properly managed, Nigeria’s lithium sector can:
Reduce reliance on crude oil revenues
Create thousands of skilled jobs
Attract sustainable foreign and domestic investment
Strengthen export earnings
Anchor Nigeria’s leadership in Africa’s green economy
5. Strategic Message for Decision-Makers
Lithium is not just a mineral discovery — it is a national economic turning point.
Nigeria must govern lithium with foresight, discipline, and purpose, or risk repeating the costly lessons of the oil era.
Comrade Wilson Macaulay is a journalist, Development Advocate and Public Policy Analyst, based in Warri
(DEMOCRACY NEWSLINE NEWSPAPER, FEBRUARY 5TH 2026)
