EXCLUSIVE: “Not a new resource rush”, NRGI’s Tengi George-Ikoli on Nigeria’s minerals
Tengi George-Ikoli, Nigeria Country Manager at the Natural Resource Governance Institute, on what it will take to turn Nigeria’s mineral wealth into investable projects. In written answers to ENN ahead of Nigeria NOW!, she argues that credible geological data and predictable regulation will do more for investors than requiring every mineral to be processed at home.
In Nasarawa State, where a Chinese-owned plant has been processing locally mined lithium since the federal government commissioned it in May 2024, Nigeria already has a working example of the value it wants to keep at home, and the Natural Resource Governance Institute (NRGI) argues that the lesson lies in choosing carefully which stages of processing to back.
“For investors, Nigeria’s mineral opportunity is genuine, but it is a long-term and selective proposition, not a new resource rush or a quick substitute for oil and gas,” said Tengi George-Ikoli, who co-wrote NRGI’s report on economic diversification, the energy transition and mineral opportunities in Nigeria, published in August. Mining projects, she told ENN, are “capital intensive, slow to develop and exposed to infrastructure, security and commodity-price risks”.
Gold refining and the young lithium processors that upgrade ore into concentrate are where Nigeria is already capturing more value, according to George-Ikoli, who pointed out that the gold refinery is privately owned and that the government’s role has been to create the policy environment for it. In lithium, she said, the 2022 restriction on exports of raw ore helped draw investment into processing. “Nigeria’s relatively large industrial base, domestic market and potential access to gas and renewable power also strengthen the proposition,” she added.
Producing lithium concentrate is a long way from refining battery-grade chemicals, however, which the report describes as substantially more complex and far more concentrated globally. “The lesson is to support commercially viable stages of selected value chains, rather than requiring every mineral to be processed domestically regardless of cost,” she said. “Not every stage of mineral processing will be commercially viable or deliver the same economic benefits.”
Where the opportunity proves strongest, according to the report, will be where the government first lowers uncertainty through credible geological data, a transparent mining cadastre, predictable regulation and coordinated infrastructure planning. “The government must also address challenges that could undermine the sector’s growth and investment potential, including poorly sequenced reforms, blanket processing requirements or an overextended national mining company,” George-Ikoli said, adding that plans to update the Nigerian Minerals and Mining Act of 2007 could help to accelerate investment.
Asked what would most strengthen investor confidence over the next two years, she put mining governance first. “The single greatest confidence-building measure would be to strengthen mining governance backed by credible implementation,” she said, which means making reliable geological information accessible to investors, linking it to the cadastre, clarifying federal and state responsibilities and consulting investors and communities before fiscal or operating rules change.
Gas needs the same coordinated and realistic approach, in her view, with Nigeria’s gas ambitions aligned to its industrial and energy transition goals, particularly in industrial clusters where renewable alternatives do not yet exist, and with the pricing and payment problems that make domestic demand hard to finance resolved first. “Investors need bankable customers, while Nigeria needs investments that drive plans to deliver a sustainable energy future and diversified economy,” she said.
Images: Tenge George-Ikoli
