The federal government has sealed deals worth $1.3 billion with investors who will set up two lithium factories in Nigeria before the end of the second quarter (Q2) of 2025.
This is as various reports confirm that investor confidence is returning to Africa’s biggest oil producer on the back of various monetary and fiscal reforms embarked upon by the government.
He said the African Finance Corporation (AFC) and the Solid Minerals Development Fund (MDF) are spearheading the investment.
Lithium is an element used in the production of glass, aluminum products and batteries, according to the United States-based Minerals Education Coalition. Australia and Chile are the world’s largest producers of lithium.
“This project will contribute about $1.2 billion of economic output annually and over $25 billion during the project’s life cycle. And of course, it will also contribute $8 billion in foreign exchange. This investment is an endorsement of our ministry’s ongoing reforms, and the SNDF and the AFC goals of catalysing private sector-led investments in the soil and minerals sector,” the minister said.
Alake said the planned Nigerian Mining Company (NMC) would be 50 percent owned by the private sector and 25 percent by the government, noting that it would drive the establishment of joint ventures.
