How Nasarawa’s Lithium Deals Could Advance Practical Resource Federalism

For decades, restructuring in Nigeria has often been discussed through conferences, committees and campaign promises, with limited practical change. President Bola Tinubu’s administration is now being linked to a different approach: encouraging states to develop their natural resources through local processing and commercial partnerships. Nasarawa State’s lithium sector is being presented as an example. In July 2026, the Diamond New Energy lithium mining and processing plant was commissioned in Endo. The facility reportedly has capacity to process about 6,000 metric tonnes daily and represents roughly $250 million in investment from a partnership involving the state government and Chinese investors. The policy focus is local value addition rather than exporting raw minerals. Processing lithium within Nigeria could create jobs, technical skills, supporting industries, taxes and export earnings. Nasarawa has also announced revenue-sharing and host-community benefit arrangements with mining firms, including planned payments to the state and development funding for Endo community. Governor Abdullahi Sule says the state is targeting at least $10 million in lithium-related earnings before the end of 2026, while monthly solid-minerals revenue has exceeded ₦1 billion. These claims should be assessed through independently audited accounts, but they highlight the potential for states to earn more by negotiating legitimate mining rights, attracting processing plants and protecting host communities.

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