Dear Readers,
In a strategic development poised to reshape Nigeria’s industrial landscape, China is set to deepen its collaboration with Nigeria through the establishment of electric vehicle (EV) factories.
During a recent courtesy visit to the Honourable Minister of Solid Minerals Development, Dr. Dele Alake, Ambassador Dunhai reiterated China’s commitment to elevating its engagement with Nigeria. Central to this renewed focus is the industrialisation potential embedded within Nigeria’s lithium-rich terrain and the vision of transforming raw mineral exports into value-added, locally processed products. He recalled the recent high-level engagement between Presidents Bola Tinubu and Xi Jinping, describing it as a launchpad for a comprehensive strategic partnership, a pivotal moment that elevated bilateral cooperation.
On the Nigerian side, Minister Alake asserted that Nigeria’s economic future lies not in the continued export of raw minerals but in their local value addition. According to the Minister, Nigeria is no longer interested in extractive partnerships that bypass local beneficiation. Instead, the focus is now on full-cycle investments, from extraction to refining and ultimately, manufacturing.
While Chinese companies are already entrenched in Nigeria’s mining value chain, particularly in exploration and mineral processing, the push now is for them to go further into local manufacturing, job creation, and technology transfer. Ambassador Dunhai affirmed China’s aim to deepen collaboration with Nigeria in alignment with President Tinubu’s eight-point agenda, particularly the push for economic diversification through the solid minerals sector.
However, beyond the optimism and diplomatic overtures lies a sobering reality: Nigeria must first confront a set of long-standing structural and institutional challenges.
The Realities on Ground
Despite its promise, Nigeria’s mining sector remains constrained by structural challenges. Inadequate infrastructure, particularly erratic power supply, substandard road networks, and weak transport logistics, poses a real threat to industrial-scale EV production. Investors cannot ignore the high cost of moving minerals from pit to plant, nor can they overlook the unreliability of the national grid to support 24/7 manufacturing.
Furthermore, the legal and regulatory framework governing the sector is in dire need of reform. The Nigerian Minerals and Mining Act, 2007, is overdue for a comprehensive review. Although a review was announced in 2021, there has been no substantive update on its progress to date. This prolonged silence undermines investor confidence. Clarity, consistency, and certainty are non-negotiable for an investment-friendly environment. In the absence of a stable and predictable policy environment, investment will stall or, worse, eventually exit entirely to more predictable jurisdictions.
The Opportunity Ahead
Despite these limitations, the sector’s potential is undeniable. As the world pivots from internal combustion engines to battery-powered mobility, lithium is emerging as the 21st century’s equivalent of oil. If Nigeria can strategically harness this opportunity, it stands to unlock significant economic value, driving industrialisation, generating employment, and positioning itself as a competitive manufacturing and energy transition hub.
The groundwork is being laid. The vision is compelling. The political will is emerging. But the real question looms:
Can Nigeria overcome its infrastructure deficits, reform its regulatory framework, and deliver the institutional maturity needed to transform the solid minerals sector, or will this become yet another missed opportunity in the country’s long quest for industrial growth and economic transformation?
