Nasarawa State has signed a fresh $2 million supplementary agreement with Chinese-backed Diamond New Energy as the state moves to expand its lithium processing and strengthen its position in Nigeria’s growing solid minerals sector.
The agreement, signed on Friday under the supervision of Governor Abdullahi Sule, is aimed at securing a steady supply of lithium raw materials for processing operations in the state. The partnership is expected to support the development of a wider lithium value chain in Nasarawa rather than relying solely on the extraction and export of raw minerals.
Governor Sule said the state would work to keep the company’s factory operational and protect the jobs already created through the investment. He also stressed that the state government has an interest in the company’s activities as a licence owner.
The agreement comes as Nasarawa continues to attract Chinese investment into lithium processing. The state has significant lithium deposits and has been positioning the mineral as part of its strategy to expand non-oil economic activity and attract investment.
For Nigerians, the development could mean more than increased mining activity. If the investment leads to expanded processing and production within Nigeria, it could create jobs, support local businesses and increase opportunities for workers and suppliers in Nasarawa.
It could also contribute to Nigeria’s efforts to earn more value from its mineral resources by processing them locally instead of depending mainly on the export of raw materials. However, the long-term benefit to residents will depend on how effectively the investment translates into jobs, local business opportunities and wider economic activity.
The latest agreement adds to Nasarawa’s growing role in Nigeria’s lithium industry as the state seeks to attract more investment into its solid minerals sector.
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