Nigeria has secured $1.3 billion in new investment deals to establish two lithium processing plants, marking a major milestone in the country’s push to revive its underutilized solid minerals sector. The factories are expected to begin operations before the end of the second quarter of 2025.
Solid Minerals Minister Dele Alake announced that the African Finance Corporation (AFC) and the Solid Minerals Development Fund (SMDF) are spearheading the projects. The investment reflects renewed confidence in Nigeria’s economy, driven by ongoing monetary and fiscal reforms.
“This project will contribute $1.2 billion in annual economic output and generate $8 billion in foreign exchange. Over its life cycle, it could add $25 billion to Nigeria’s economy,” Alake said.
He also revealed plans for the Nigerian Mining Company (NMC), a newly established public-private venture. With 50% private sector ownership and 25% government control, the NMC aims to drive innovation and limit government interference.
“We already have a CEO and structure in place. This company will run with private-sector efficiency,” Alake said, framing it as a lasting reform legacy.
Despite its resource wealth, Nigeria has historically lagged in solid minerals exploration. Alake highlighted the stark contrast between Nigeria’s previous $2 million budget for exploration and much higher investments from smaller African nations like Côte d’Ivoire ($148 million) and Senegal ($48 million).
“For decades, we relied too heavily on oil. We ignored productive sectors like agriculture and mining and became a consumption-driven economy,” Alake added.
So far, his ministry’s reforms have helped create over 27,000 jobs for artisanal miners across 90 rehabilitated sites.
NEPC CEO Nonye Ayeni emphasized the sector’s potential to drive exports and economic diversification. Through a newly established Solid Minerals Department, the NEPC will promote value addition, support MSMEs, and develop mineral clusters.
“Minerals like lithium, lead, and tantalite are in global demand, powering industries from energy storage to aerospace,” Ayeni stated.
However, she acknowledged infrastructure and regulatory barriers that still limit the sector’s growth.
Janet Adeyemi, President of the Women Miners Association of Nigeria, stressed the need for strict enforcement of environmental regulations.
“No mining should proceed without Environmental Impact Assessments (EIA) and ESG reports,” she said, urging Nigeria to adopt global standards for mining accountability.
Frank Aigbogun, publisher of BusinessDay, expressed cautious optimism about the sector’s future. He said increasing investor activity and packed hotel bookings are signs that global confidence in Nigeria is returning.
“This is not just talk. We must now act on the optimism and unlock our vast mineral wealth,” Aigbogun said. “Solid minerals could become Nigeria’s next economic pillar.”
Meanwhile, Nigeria’s business confidence index rose for the third consecutive month in April 2025, according to the NESG-Stanbic IBTC Business Confidence Monitor (BCM), which pegged March’s Business Performance Index at +6.58.
