Nigeria has obtained funding to develop its critical mineral value chain and boost local solar power production. This initiative, supported by the UN’s Sustainable Energy for All, aims to enhance economic benefits from mineral resources. Partnerships with academic institutions will help establish standards for local processing, ultimately reducing the need for imports.
Nigeria has secured critical funding aimed at developing a master plan to enhance its critical mineral value chain from extraction to value addition. This initiative marks progress in maximizing the country’s vast mineral resources before exporting them. Dele Alake, the Minister of Solid Minerals, obtained this study facility during the Mining Indaba in Cape Town, supported by the Global Council for Critical Minerals under the UN’s Sustainable Energy for All.
The University of California, Davis, and Core International will conduct the research to evaluate Nigeria’s mineral deposits and establish globally acceptable standards for local value optimization. This move is part of a broader trend among African nations striving to increase economic benefits from local mineral production and processing. With an increasing global focus on green minerals, Africa is poised to attract attention due to its significant mineral reserves.
Nigeria holds proven mineral reserves valued at approximately $700 billion, yet its mining sector contributes only 0.2 percent to the GDP, primarily due to its artisanal nature. Minerals like lithium and nickel, essential for battery manufacturing and renewable energy technologies, are abundant in Nigeria. The study facility is also focused on bolstering local industrial activities, particularly in solar power production, which is currently reliant on imports.
Dele Alake emphasized the need to pursue local production of solar power materials instead of continuing imports. He stated, “Since we have the materials for the production of solar power, we should vigorously pursue the policy of stopping the importation of solar power products and localize the production in Nigeria.” He also highlighted that the Nigerian market has a significant presence in the West African region, ensuring a ready market for locally produced products.
The article addresses Nigeria’s newly acquired funding to develop its critical mineral value chain, aiming to transition from raw material extraction to value-added processing. It underscores the need for African nations, particularly Nigeria, to capitalize on their mineral resources to enhance local economies and fulfill global demands for green minerals, which are increasingly sought after for renewable energy applications. Historically, Africa has exported raw minerals, leading to lost economic opportunities. This initiative seeks to establish a more sustainable approach to mineral wealth that benefits local markets and industries.
In summary, Nigeria is taking significant steps towards enhancing its critical mineral industry by securing funding for value chain development. The partnership with leading academic institutions aims to set high standards for local processing, enabling Nigeria to retain more economic benefits from its resources. The focus on solar power production will bolster local manufacturing, ultimately reducing import dependency while catering to regional markets. This multi-faceted approach promotes both economic growth and sustainability, aligning Nigeria with global trends in mineral demand and energy production.
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