UNCTAD report highlights Nigeria’s growing role as global clean energy transition drives scramble for critical minerals

The Federal Government has projected a significant increase in global demand for lithium, with estimates showing a 353 percent rise by the year 2040, according to new findings from the United Nations Conference on Trade and Development (UNCTAD). This projection, released on Sunday, underscores the urgency surrounding Nigeria’s lithium reserves, particularly as international focus shifts to clean energy technologies.

UNCTAD’s latest report indicates that as countries intensify efforts to reduce carbon emissions and scale up electric vehicle (EV) production, minerals crucial to energy transition—including lithium, nickel, and rare earth elements—will experience sharp increases in demand. The share of nickel used in clean energy applications is expected to rise from 17 percent to 42 percent globally by 2040. Magnet rare earths, vital for wind turbines and electric motors, are also projected to see their share grow from 21 percent to 31 percent within the same period.

For Nigeria, these trends carry direct economic implications. The country has emerged as a significant player in the lithium sector, with states such as Nasarawa recording major discoveries and attracting interest from both local and foreign investors. The Federal Government has previously disclosed plans to establish a ₦600 million lithium processing plant in Nasarawa State as part of wider efforts to develop value chains around the mineral.

While the government continues to promote investment in mining infrastructure and local processing capacity, industry analysts warn that effective regulation is crucial to ensure transparency and equitable benefit for host communities. They have called on authorities to enforce environmental standards and prioritise job creation for Nigerians within the sector. No official statement has yet been released by the Ministry of Solid Minerals Development on the new UNCTAD projections.

Experts say that if well-managed, Nigeria’s lithium sector could provide an alternative revenue stream amid fluctuating oil receipts and contribute significantly to economic diversification. However, they stress that more must be done to prevent illegal mining activities and ensure community development agreements are strictly implemented.

Source: https://guardian.ng/business-services/demand-for-lithium-to-surge-353-by-2040-amid-scramble-for-nigerias-deposit/