By Dr. Joel Ademisoye

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Is this the “most valuable mineral resource on Earth” a game changer for Nigeria, with a heavy dependency on a ‘mono export product,’ oil, deteriorating economic conditions and a declining economy, via its foreign exchange earnings. Nigeria has discovered an enormous reserves of lithium in the country. What is the use of lithium? Lithium has many uses, for example, in the health care (treatment of mental illness) and most importantly in the manufacturing of rechargeable batteries in cellphones, laptops, digital cameras and electric vehicles (EVs). With the climate change issue and the transition from the fossil fuels to renewable energy- electric vehicles, the need and demand for lithium in the future, is enormous and tremendous. How much in valuable quantities, the Federal Government of Nigeria (FGN), is keeping a tight lip on the tonnes of reserves?

Watching the video clip advertising and promoting the importance of Lithium to the Nigerian economy, how often many investors like Elon Musk /Tesla or other countries like Australia are interested in bidding for and mining interest in the Nigeria’s Lithium. But, the Nigerian Minister of Mines and Steel Development, Architect Olamilekan Adegbite, is putting all interested investors and parties on a hold for the time being. The FGN is putting a conditionality for allowing the mining of Nigeria’s lithium, which is the investor must set up a processing and refining plant in the country. I agree with the FGN’s position, requirement, criterion and conditionality for permitting the mining of the country’s lithium, because it gives a focus, emphasis and priority on the country’s national interest and the other benefits that would accrue to the Nigerian economy and its citizens- via the locational factor and employment opportunities for Nigerians. In fact, it is a paradigm shift by the Tinubu administration from the old development strategy and export practices, which allows the export of a raw lithium materials to a foreign country for processing, refining and production of a final product for the market. I think the Tinubu government’s approach to a full mining, processing and manufacturing the lithium production for the market gives the country of Nigeria, a direct interest, control, production and management of its natural resource and raw material’s accessibility to the foreign markets. Also, it is much easier for the Nigerian government to collect its monitor, supervise and manage the production process of lithium in the country. More importantly, the Federal Government of Nigeria (FGN) would be effectively and efficiently collecting the appropriate royalties and taxes from the management company in Nigeria (exercising transparency and accountability over the manufacturing of lithium in the country).

How important is lithium to the global economy? Lithium is a material, which contains a reactive metal that is used in the energy sector, to manufacturing the dense rechargeable batteries for the cellphones, laptops and Electric Vehicles (EVs). Chile has the largest reserves of lithium in the world, but the second supplier after it, is Australia. It seems that lithium is in short supply around the world. The Tbe President Biden administration in the United States, is interested in and eagerly pursuing its acquisition for the use of rechargeable batteries in the Electric Vehicles (EVs) program. As a result, lithium has become a strategically important and valuable raw material in the future of the renewable energy sector in the United States. However, lithium could be a game changer for the Nigerian economy, if it is properly produced, managed and marketed as a strategic export material, not the way the oil reserves of the country were corruptly managed and its generated revenues looted by the members of the political and governing class of Nigeria.