Nigeria's ambition to position mining as a key driver of economic diversification faces significant structural and policy challenges, according to Engr. Tim Eldon, Managing Director of Timadix Geomin Consult Nig. Limited.

While acknowledging the country's strong mineral potential, Eldon warned that industrial readiness remains a major constraint, particularly in the fast-growing lithium market.

"Nigeria is geologically promising but industrially underprepared," he said, noting that although pegmatite belts across Nasarawa, Kaduna, and Oyo show "significant lithium potential," the country lacks the infrastructure and technical depth to compete globally beyond concentrate production.

"Currently, Nigeria can compete in concentrate production, but we are not yet ready for battery-grade lithium chemical production at scale," he added.

He outlined key requirements for competitiveness, including "beneficiation plants, chemical conversion facilities, stable regulatory frameworks, and skilled metallurgical expertise," stressing that "the opportunity is real but readiness requires industrial discipline."

Eldon also highlighted regulatory inconsistency as a major deterrent to investment, comparing Nigeria unfavourably with leading African mining jurisdictions.

"Countries like Ghana and Botswana have built investor confidence through stable fiscal regimes, clear licensing timelines, and transparent cadastre systems," he said. "Nigeria's Mining Act is competitive on paper, but implementation can be inconsistent."

According to him, "mining investment is long-term. Regulatory uncertainty discourages capital deployment."

On environmental concerns, Eldon warned that sustainable mining practices must be treated as a core operational requirement, not an afterthought.

"Sustainable mining is not optional; it is fundamental," he said, referencing legacy environmental damage in Plateau and Bauchi. He urged operators to adopt "progressive land rehabilitation, proper tailings management, and community engagement frameworks."

He added that "commercial viability improves, not declines, when environmental risk is managed early," cautioning that negligence leads to "reputational damage, legal exposure, and project shutdown risks."

Eldon further stressed the importance of digitising Nigeria's vast geological data to improve exploration outcomes.

"Nigeria holds decades of geological survey data, but much remains fragmented, analog, or inaccessible," he said. "The future of Nigerian mining depends heavily on data transparency and accessibility. Investors invest where data reduces uncertainty."

Looking ahead, he called for urgent reforms to reposition the sector, outlining five priority areas: "geological data modernisation, stable regulatory implementation, incentives for local processing, infrastructure development, and technical capacity building."

"The opportunity is historic," Eldon concluded. "The question is whether we will approach it strategically or repeat the mistakes of the past."