Despite vast deposits, Nigeria’s lithium industry is dominated by Chinese companies, with local investors sidelined due to insecurity, poor capacity and weak government support.
Despite Nigeria holding lithium deposits worth over $34 billion, local investors remain largely absent from the mining and processing of the critical mineral, leaving the space dominated by Chinese firms.
Lithium, vital for renewable energy, electric vehicles and energy storage, is now classified as a strategic mineral. Deposits are found across Nasarawa, Kaduna, Niger, Kwara, Kogi, and Ekiti states, with over 70 percent concentrated in the North Central region.
Sources told Financial Vanguard that Chinese companies, including Avatar and Ganfeng, are leading exploitation, with facilities capable of processing up to 6,000 metric tons daily.
Much of the lithium is shipped to EV battery manufacturers in Asia, while Nigeria continues to export raw minerals instead of finished products.
Industry experts, including Dr. Muda Yusuf of the Centre for the Promotion of Private Enterprise, stressed that insecurity, lack of geological data, and poor awareness are deterring local investors. “We don’t have domestic investors in that space because we don’t have much capacity in terms of those who understand the industry and are willing to take the risk,” he said.
Miners Association of Nigeria President, Dele Ayanleke, warned against total foreign domination, urging government incentives and policies to build indigenous capacity.