Nigeria's lithium rush is off to a rocky start due to challenges in its mining sector. Despite significant lithium reserves found in the central and northern states, the country's first lithium processing plant in Kaduna State is struggling to deliver on its promises. Here are the key issues:

*Challenges:*

- *Informal economy*: Nigeria's mining sector is largely informal, making it difficult to regulate and increasing the risk of exploitation and environmental degradation.

- *Lack of transparency*: The source of lithium being processed at the plant is unclear, raising concerns about incentivizing informal mining.

- *Unmet promises*: Local residents have seen little benefit from the plant, including jobs and improved infrastructure.

- *Pollution concerns*: Pits used to wash lithium ore are located near a dam, contaminating water during heavy rains.

*Government Initiatives:*

- *Formalizing the sector*: The government aims to bring artisanal miners into regulated cooperatives and add value to lithium resources by processing them domestically.

- *Attracting foreign investors*: The government wants to attract foreign investors to the nascent sector to diversify the economy away from oil.

- *Crackdown on illegal mining*: The government has formalized over 1,200 small-scale mining cooperatives and boosted revenue generation from mining fees [1].

*Future Prospects:*

- *New processing plants*: Two new lithium processing plants worth over $800 million are set to open later this year, backed by Chinese companies Jiuling Lithium Mining Company and Canmax Technologies.

- *Job creation*: The plants are expected to create thousands of jobs and generate significant revenue for the country.

- *Value-added dreams*: Nigeria aims to refine its resources domestically to fetch higher prices on the international market and create more jobs for its citizens [1].