The House of Representatives on Wednesday tasked the Federal Government with the urgent need to upscale the lithium sector of the country’s economy with a view to holistically diversify the economy.
The resolution was passed sequel to the adoption of a motion sponsored by Hon. Victor Obuzor, who called for the House intervention.
In his lead debate, Hon. Obuzor observed that “Nigeria’s vast mineral resources, including metallic ore energy industry, construction, and gemstones, are deposited across various geological groups, yet the mining sector remains underdeveloped.
“Mining was a major contributor to the economy in the 1900s, reaching a peak in the 1950s at roughly 4-5% of GDP, however, the industry declined as a result of the discovery of oi and gas currently, mining accounts for less than 0.8% of GDP, which is much less than the average of almost 5% for the continent.
“The House also notes that Lithium, a reactive metal is utilized in energy-dense rechargeable batteries, which are crucial for the global clean energy transition. These lightweight compact batteries store more energy per volume, making them ideal for portable devices and grid storage.
“The House is concerned that there is no definitive estimate of the country’s lithium reserves, despite exploration surveys commissioned by the Ministry of Sold Minerals Development under the National Integrated Mineral Exploration Project (NIMEP). Significant lithium-bearing minerals have, however, been discovered in Nasarawa, Kogi, Kwara, Ekiti, Cross River, Ogun, and Plateau States.
“The House is worried that the country is facing a pivotal moment in its mining history due to rising global demand for renewable energy but is repeating past mistakes in the oil and gas sector by focusing solely on the upstream value chain, losing the opportunities that come with operating in the downstream segments.
“The price of high-quality lithium carbonate increased from $5,180 in 2010 to $46,000 in 2023 (with a peak of $68,100 in 2022), making previously abandoned deposits economically viable. The IEA predicts global demand could rise 13 times by 2040.
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“The House is alarmed that despite an estimated $700 billion worth of mining potential, lithium exploration in Nigeria remains poorly funded with only a fraction of projects reaching full potential due to challenges in project design construction, and production:
“According to the Nigerian Geological Survey Agency (NGSA), exploratory samples showed promise, with minerals containing up to 13% lithium oxide content, while the global average mine ore contains about 1-2% Iethium oxide content.
“The House is concerned that the Solid Minerals Development Fund (SMDF). a sovereign fund aimed at catalyzing Private sector investments in Nigeria’s mining sector, has not made any significant investments in lithium mining,” he noted.
To this end, the lawmakers urged Ministry of Solid Minerals Development to cause the creation of the Nigerian Lithium Production Agency in line with Part EI Section 4 P) of the Nigerian Minerals and Mining Act 2007 with the mandate to develop a vertically integrated lithium industry; create a roadmap for developing the infrastructure required by potential lithium mines in Nigeria and design the regulatory and legal framework governing the sector the framework aims to establish a Lithium value chain policy that links mining approvals to significant investments in midstream and downstream segments of the value chain.
The House also tasked Ministry of Solid Minerals Development to request increased funding from the Nigerian Geological Survey Agency (NGSA) to enable 1t to carry out mineral site mapping and high-resolution airborne surveys, inluding radiometric and electromagnetic surveys, to accurately determine the number of lithium deposits in Nigeria.
Hence, the House mandated its Committee on Solid Minerals Development to carry out an investigative audit of the Solid Minerals Development Fund (SMDF) account from 2015 to date.
READ MORE FROM: NIGERIAN TRIBUNE
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