Victor Ezeja
AdminPresident Bola Tinubu recently asserted that “we have a line of sight to the foreign exchange we need to refloat this economy.”
He spoke against the backdrop of the Naira depreciating by over 40 per cent and at a time his Minister of Budget and National Planning, Atiku Bagudu, openly acknowledged that “there is no money anywhere in the country.”
Join our WhatsApp ChannelThe optimism by President Tinubu while addressing the Nigerian Economic Summit a little over a week ago piqued Prime Business Africa’s interest in finding out what “line of sight” he was referring to. Those who should know pointed us to the mining sector where exploitable quantity of Lithium has been discovered in parts of the country.
Experts predict this natural resources to be more valuable than gold, diamonds, silver and oil by 2040. Lithium is the key component in batteries. The price of the mineral went from $6000 per ton in 2020 to $78,000 per ton in 2022. According to the Director-general of Nigeria’s Geological Survey Agency, Abdulrazaq Garba, the Lithium found in Nigeria is of the best grade, with as much as 13 per cent lithium oxide in some cases whereas concentrations of 0.4% are already considered exploitable.
Our correspondent gathered from sources in the Ministry of Solid Minerals, who pleaded anonymity, that Tinubu is indeed looking towards Mining as a means of pulling Nigeria from economic doldrums. Recall that the Minister of Solid Minerals, Dele Alake, said as much when the portfolio was newly assigned to him as against the Ministry of Information many had thought he would man.
Speaking with reporters, Alake said: “If you all can sit down to analyse the global trend of economic development, you would note that the hydrocarbon that is the oil is fading out and the world is moving towards alternatives like gas, electric cars, and the rest. So what is the next economic growth factor? It is solid mineral.
READ ALSO: Tinubu Vows To Re-float Nigeria’s Economy After Floating Naira
“Given the nature of this sector to our economic growth and vitality of this country which is dear to the heart of Mr President, it’s just very apt and proper for him to send me here because he knows and trusts that I have a demonstrable sense of responsibility and courage to drive the agenda, that is why I am here. We are going to drive that agenda with the full cooperation of everyone.”
Lithium has emerged as the line of sight for the Tinubu administration with the $250 million investment it recently attracted to the country from the Chinese company, Ganfeng Lithium Group. Staffers at the Ministry of Solid Minerals are already referring to the mineral as the “new oil.”
According to Ganfeng President, Pan Quen, the Chinese factory being built in Nigeria will, upon completion, process 18,000 tons of Lithium daily and aim for an annual output of 4.5m tons. This will translate into 2,500 direct jobs and 15,000 indirect jobs for Nigerians. As it were, the Chinese firm succeeded where the United States electric car maker Tesla failed.
It was gathered from officials in the ministry that as of last year the company, owned by the world’s richest man, Elon Musk, sought Lithium mining rights in Nigeria but the talks broke down after Nigeria insisted that Tesla would have to set up a battery production plant in the country.
Meanwhile, interest has also come from Canada as a Toronto-based company with footprint in South America, Orosur Mining announced on the 16th of October, 2023 that it had obtained rights to mine for Lithium in four sites in Nigeria. Speaking in Abuja, the company’s chairman, Louis Castro said their in route to Nigeria is “a continuation of the company’s strategy of securing high-quality mineral exploration opportunities in key jurisdictions worldwide.”
In the main, the Nigerian government has demonstrated that the country is open for business by laying out generous incentives for mining investors, including a five-year tax holiday, deferred royalty payments, duty exemptions on plant and machinery and 95 per cent capital allowances.
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