Nigeria is tightening licensing regulations for foreign mining companies in an effort to boost in-country processing and refining of metals, including lithium and zinc, according to the Minister of Mines, Dele Alake.
This policy, unveiled during a Nigeria Mining Week event in Abuja, mandates that mining companies must present “value addition” business plans to obtain licenses.
Alake emphasized the need for this move to create job opportunities, noting that some companies have already commenced operations in Nigeria.
One example highlighted by the minister is Ganfeng Lithium Industry, a Chinese firm currently constructing a lithium processing plant in Nasarawa state.
This facility will process approximately 18,000 tons of lithium ore daily to produce batteries for electric vehicles.
Nigeria aims to attract investors to its underdeveloped mining sector, which has historically contributed less than 1% to the nation’s GDP.
As Africa’s leading oil producer with abundant resources like gold, limestone, and zinc, Nigeria seeks to diversify its economy away from oil dependency.
To support this transformation, Alake mentioned the modernization of the mining industry and significant government investment in data collection.
Over seven years, more than 15 billion naira ($19.6 million) has been allocated for the National Integrated Mineral Exploration Project (NIMEP), generating valuable mineral data and uncovering substantial lithium resources.
Additionally, Nigeria recently announced plans to establish a state-backed company aimed at attracting investments for the extraction of various minerals, including gold, coal, iron-ore, baryte, lead, bitumen, and limestone.
