Policy
Nigeria plans three lithium processing plants to curb imports
The Nigerian government has announced plans to construct three lithium processing facilities in Nasarawa, Kaduna and Abuja to boost domestic manufacturing.
Key points
- Federal Government announces three new lithium processing plants.
- Facilities will be located in Nasarawa, Kaduna and the Federal Capital Territory.
- Initiative aims to capture greater value from critical mineral resources.
What happened
Nigeria has announced plans to build three lithium processing factories located in Nasarawa, Kaduna and Abuja. BusinessDay reported that Vice-President Kashim Shettima made the disclosure in Abuja at an international conference focusing on the African Continental Free Trade Area (AfCFTA) and geoeconomics.
Represented by Tope Fasua, his Special Adviser on Economic Affairs, the Vice-President stated that the country must transition away from exporting raw strategic minerals while importing finished goods at higher prices. The announcement did not include specific details regarding investment costs, timelines, or ownership structures for the proposed industrial plants.
Shettima noted that global trade dynamics have shifted due to heightened competition for critical minerals, energy security, and advanced technology. He argued that Africa has historically suffered from structural disadvantages by supplying raw commodities for the industrial advancement of other nations.
What comes next
Former President Goodluck Jonathan also spoke at the event, emphasizing that the AfCFTA must lead to an integrated productive economy rather than serving solely as a single continental marketplace. Both speakers stressed that achieving industrial transformation requires deliberate policy action, robust infrastructure, and adequate financing.
Why it matters
This policy shift addresses a fundamental vulnerability in Nigeria's external trade. According to World Bank data from 2025, fuel exports accounted for 85.9 percent of Nigeria's merchandise exports, highlighting a heavy reliance on primary commodities compared to a global average of 9.5 percent.
For energy and industrial investors, developing domestic processing capacity for critical minerals such as lithium represents a strategic opportunity. However, realizing this potential will depend heavily on overcoming domestic infrastructure deficits. World Bank figures for 2024 show that Nigeria's electricity use per person stands at 140.6 kWh, significantly lower than the global average of 3,708.5 kWh, while electricity access is limited to 62.5 percent of the population. Reliable power supply and targeted financing will be essential to ensure these planned processing facilities successfully integrate into the global battery and clean energy supply chain.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Policy sets the direction for energy investment: national transition plans, market reforms such as Nigeria’s Electricity Act 2023, and global commitments under the Paris Agreement.
62.5% of people in Nigeria had electricity in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
