Rabiu Omaku
The covenant of the State Governor, Engineer Abdullahi Sule to make Nasarawa State an Industrial State has come to fusion with the citing of series of industries especially Lithium plant in Endo community of Nasarawa Local Government Area of Nasarawa State.
The State Governor averred during an interaction with the management of the Lithium plant at Endo that the company should be ready to employ graduate by paying them N500,000 each,that majority of their staff should be within the Local community and the State.
Again,another company known as Avatar was cited inside Nasarawa town, Nasarawa State was not left behind as the global energy transition is accelerating demand for critical minerals. These resources underpin clean energy technologies and modern industrial systems, including electric vehicles, battery storage.
The world over has already join the queue of smartphones, computers, and power infrastructure. as a result, critical minerals have become central to economic competitiveness, energy security, and geopolitical strategy.
Nasarawa possesses significant deposits of critical minerals, including lithium, tantalum, tin, zinc, lead, barite, and rare earth elements. however, after years of policy reforms and growing private-sector participation, current discussions around Nasarawa mining sector have become disproportionately focused on lithium.
Lithium is undeniably important. often referred to as “white gold,” it is a key component of battery technologies and plays a vital role in the global energy transition. Yet an overwhelming focus on lithium risks overshadowing other strategic minerals in which Nigeria already holds established positions in global supply chains.
The data underscore this point. In 2023, Nigeria produced approximately 930 tonnes of lithium, accounting for about 3 percent of Africa’s production. By 2025, output had risen to an estimated 1,000 tonnes. In contrast, Nigeria supplied approximately 19 percent of global tantalum production in the same period. Production of rare earth minerals also increased significantly, from 30 tonnes in 2020 to approximately 4,000 tonnes by 2024.
Similar growth trends have been recorded for tin, lead, zinc, niobium, zircon, feldspar, and fluorspar.
The current emphasis on lithium reflects a broader challenge in Nigeria’s approach to natural resource development. Historically, the discovery and commercialisation of crude oil shifted attention away from other productive sectors, particularly agriculture and mining. Today, the rush toward lithium risks repeating a similar pattern by concentrating policy attention and investment on a single commodity at the expense of a diversified minerals strategy.
The lithium boom has also exposed weaknesses in Nigeria’s mineral governance framework, particularly in data collection and reporting. Significant discrepancies exist between production and export figures reported by domestic institutions and international databases. Comparisons between the Nigeria Extractive Industries Transparency Initiative (NEITI) Solid Minerals Audit Reports and datasets from the United Nations Comtrade Database, the World Mining Data (WMD), and the United States Geological Survey (USGS) reveal substantial inconsistencies.
These data gaps undermine investor confidence, distort policy planning, and hinder effective sector management.
While developing Nigeria’s lithium resources remains important, greater strategic attention should be directed toward minerals where the country enjoys established comparative advantages, particularly tantalum, tin, niobium, lead, and zinc and recently, rare earth elements. A diversified approach would reduce exposure to commodity-specific risks, including price volatility, technological shifts in battery chemistry, geopolitical trade restrictions, and changing production economics. Recent declines in lithium carbonate and lithium hydroxide prices illustrate the risks of overreliance on a single mineral.
To maximise the value of its mineral endowment, Nigeria should prioritise downstream processing and refining capabilities. Capturing greater value within the country will require sustained investments in energy infrastructure, transportation networks, and industrial facilities. Policy measures such as targeted tax incentives, a flexible royalty regime linked to global commodity prices, and stronger participation by state and local governments could further enhance sector competitiveness.
Nigeria also requires an integrated national critical minerals strategy that extends beyond lithium. Such a strategy should align mineral development with broader objectives for industrialisation, economic diversification, and national security.
Although mining remains under federal jurisdiction, effective development of the sector will require stronger coordination among federal, state, and local governments.
Standardised systems for reporting production volumes from large-scale, small-scale, and artisanal mining operations should be established and enforced. In addition, the Nigeria Customs Service should receive specialised training to improve the identification, classification, and reporting of mineral exports. Existing discrepancies between customs records and international trade databases highlight the need for significant improvements in export reporting and monitoring.
The global race for critical minerals has exposed longstanding structural challenges within Nigeria’s mining sector. Weak data systems, limited exploration activities, regulatory gaps, bureaucratic inefficiencies, and inconsistent implementation of reforms continue to constrain growth and investment.
Addressing these challenges will require stronger institutions, improved regulatory certainty, reduced administrative barriers, and consistent policy execution. Full implementation of recommendations contained in the Nigeria Economic Summit Group’s policy brief, Transforming Nigeria’s Mining Industry, would provide a practical framework for sector reform.
Nigeria’s opportunity in the critical mineral’s economy extends far beyond lithium. By adopting a diversified, data-driven, and value addition-focused strategy, the country can strengthen its position in global supply chains, attract long-term investment, and unlock the full economic potential of its mineral resources.
Meanwhile,the Nasarawa mining company has signed a landmark exclusive cooperation agreement with Ganfeng Lithium Industry Limited, a wholly-owned subsidiary fully acquired by Diamond New Energy for lithium mining and processing development across Nasarawa State.
The partnership stands as a defining and pivotal milestone in the State’s modern mining industrial transformation,It is critical to remind and clarify to all stakeholders that the exclusive lithium resource development and processing agreement officially endorsed by the Nasarawa State Government and Nasarawa Mining company is awarded solely to Ganfeng Lithium Industry Limited, under the full ownership and management of Diamond New Energy.
The formal and binding contractual agreement serves as the exclusive legal and commercial foundation for all lithium investment, construction, and operational activities within the State.On September 9, 2024, Governor Abdullahi Sule presided over the official agreement signing ceremony, formally launching the State’s long-term mining industrialization blueprint, which is poised to
comprehensively upgrade and restructure Nasarawa’s economic development landscape for the next sixty years.
Under the binding terms of this exclusive strategic alliance, Ganfeng Lithium Industry Limited (fully owned by Diamond New Energy) obtains the sole and exclusive legal rights for lithium exploration, mining and processing of all lithium assets held by Nasarawa Mining company within the Endo community of Nasarawa Local Government Area.
In strict compliance with the signed agreement, Diamond New Energy, on behalf of its fully acquired subsidiary Ganfeng Lithium Industry Limited, has paid a $1.5 million signature bonus to Nasarawa Mining company, supplemented by a standardized long-term profit-sharing mechanism between both parties, fully laying a solid financial and operational foundation for the official launch and sustainable operation of the lithium project.
At present, the high-standard lithium processing plant invested and constructed by Diamond New Energy (operated by Ganfeng Lithium Industry Limited) has been fully completed in Endo community.
The facility is currently in stable test-running phase and is scheduled for official commissioning.the landmark project will further consolidate Nasarawa State’s core competitive position and influential status as a key lithium industrial hub within Nigeria’s mining sector.
The official commissioning and operation of this modern lithium processing plant will inject strong impetus into Nasarawa’s local economic growth, generate large-scale formal employment opportunities for local residents, and comprehensively improve people’s livelihood and overall social welfare across the State.
As a leading comprehensive enterprise in the global lithium new energy industry, Diamond New Energy boasts a complete industrial chain layout, covering upstream lithium resource exploration and development, midstream lithium deep processing and intelligent manufacturing, as well as downstream power battery manufacturing and full-life-cycle battery recycling services.
Environmental protection, ecological Governance and sustainable green development have always been core priorities throughout the project’s construction and operation, which fully aligns with the supervision requirements emphasized by Princess Dr. Margaret Elayo, Commissioner of Environment and Natural Resources.
The factory has fully implemented a closed-loop sewage recycling and zero-discharge system.
All production wastewater is centrally collected, professionally purified, and fully recycled for repeated factory use, achieving complete zero discharge of industrial sewage.
This eco-friendly production model eliminates water pollution risks entirely, establishing a high-standard environmental benchmark for green and sustainable mining processing operations in the region.
Nasarawa State will gain far-reaching and long-term economic and industrial benefits from the exclusive strategic cooperation with Diamond New Energy and its wholly-owned Ganfeng Lithium Industry Limited.
Relying on the enterprise’s mature battery manufacturing and professional recycling capacity, the project can stably supply high-purity lithium core raw materials for electric vehicle manufacturers and electronic equipment OEMs, while providing customized battery solutions and integrated waste battery recycling services.
This exclusive industrial cooperation fully embodies Governor Abdullahi Sule’s firm determination and forward-looking strategic layout to promote mining industrialization and green economic transformation.
Supported by the professional technology and complete industrial chain advantages of Diamond New Energy, Nasarawa State is on track to build a world-class demonstration base for standardized, environmentally friendly and sustainable mining practices.
Driven by the exclusive partnership between Diamond New Energy’s fully acquired subsidiary Ganfeng Lithium Industry Limited and Nasarawa State, Nasarawa has officially opened a brand-new chapter of high-quality industrial development.
Through this authoritative contractual cooperation, the State can not only efficiently and rationally develop its abundant high-grade lithium mineral resources, but also take the lead in establishing a standardized green mining system, growing into a benchmark leader of sustainable development in Africa’s mining industry.
Governor Sule’s proactive industrial Governance concepts, coupled with Diamond New Energy’s advanced industrial expertise, cutting-edge environmental protection technology and mature project operation experience, have paved a solid path for Nasarawa State’s prosperous and sustainable economic future.
The landmark lithium project has ignited huge expectations among Local people, who are eager to embrace the new green economic paradigm and achieve shared development and prosperity.
The upcoming presidential inauguration of Diamond New Energy’s Endo lithium processing plant serves as the most powerful testament to Governor Abdullahi Sule’s unswerving commitment to mining industrialization and ecological sustainable development.
As the flagship industrial project of Nasarawa State’s mining revitalization strategy, this achievement will leave an indelible historical legacy. It will not only serve as a vital development reference for industrial transformation across Africa, but also set a replicable high-standard benchmark for future green mining and economic development generations.
Meanwhile, Dr. Margaret Elayo has been making tireless efforts in daily supervision and Governance, ensuring that all mining investment and production activities in Nasarawa State strictly comply with national and international environmental protection standards, and fully guaranteeing the long-term ecological sustainability of the State’s mining industry.
