A $600 million lithium processing plant near the Kaduna-Niger border is scheduled for commissioning this quarter, while a $200 million lithium refinery on the outskirts of Abuja is nearing completion, according to Mining Minister Dele Alake, who announced the plans on Sunday, signaling a shift from exporting raw minerals to adding value domestically.
The facilities, which are primarily funded by Chinese investors, could help turn Nigeria’s vast mineral wealth into jobs, technology, and manufacturing growth within the nation.
The minister stated that by the third quarter of 2025, two more processing facilities are anticipated in Nasarawa state, which is adjacent to the capital, Abuja.
“We are now focused on turning our mineral wealth into domestic economic value – jobs, technology, and manufacturing,” stated Alake.
Separate announcements from the governors of the states where the plants are located reveal that Chinese companies, such as Canmax Technologies and Jiuling Lithium Mining Company, have contributed more than 80% of the funding for the four facilities.
Three Crown Mines, a local investor, owns the remaining shares.
Following 2022 research by Nigeria’s Geological Survey Agency that attracted significant worldwide attention by identifying substantial reserves of high-grade lithium throughout six Nigerian states, there is a drive for domestic processing.
These changes are a part of Nigeria’s larger efforts to improve its mining industry, which is currently undeveloped and accounts for less than 1% of the country’s GDP.
Restricting the export of raw minerals, formalizing artisanal mining operations—which make up the majority of present extraction—and creating a state mining company in which investors can acquire up to a 75% interest are some of the other measures implemented.
