The Federal Government has dismissed claims by the Northern Elders Forum (NEF) that it plans to establish a gold refinery in Lagos, describing the allegation as false, misleading, and capable of causing unnecessary tension.
The clarification came from the Ministry of Solid Minerals Development following concerns raised by NEF over the reported location of a gold refinery in Lagos. The forum had argued that siting such a facility in Lagos would violate the federal character principle and further sideline the northern region, where much of Nigeria’s gold deposits are found.
However, the ministry said there was no government decision to site a gold refinery in Lagos or in any other part of the country, stressing that the project being discussed is a private business venture.
In a statement issued on Sunday in Abuja, the Special Assistant on Media to the Minister of Solid Minerals Development, Mr Segun Tomori, said the minister, Dr Dele Alake, never announced that the Federal Government was establishing or owning a gold refinery in Lagos.
Tomori said the refinery in question is a wholly private investment by Kian Smith, a Nigerian mining company, and not a government project.
“At no time did the Honourable Minister say that the Federal Government owned or was establishing a gold refinery in Lagos or anywhere else in the country,” Tomori said.
The NEF had earlier issued a statement signed by its spokesperson, Prof. Abubakar Jiddere, expressing concern over reports that a gold refinery would be located in Lagos. The group argued that such a move would be unfair to the northern region and against the spirit of federal character, which seeks to ensure fair distribution of national resources and institutions.
The statement sparked public debate, especially on social media, with some commentators accusing the Federal Government of favouring certain regions over others.
Responding to the claims, Tomori explained that the Lagos refinery is an initiative of Kian Smith, a fully private mining firm, and that the government has no power to dictate where a private investor should locate its business.
“The refinery is a private sector project. The ministry does not determine where private companies site their investments. Such decisions are based on business, logistics, access to markets, and operational efficiency,” he said.
He added that Dr Alake had clearly stated that other gold refineries are being planned in different parts of the country and that all of them are privately owned by different companies.
According to Tomori, the ministry’s role is to create a friendly environment for investors and ensure that mining activities follow the law and support national development.
He also praised the founder and Managing Director of Kian Smith, Ms Nere Emiko, for her determination and leadership in delivering the Lagos refinery after several years of effort.
The refinery, he said, is designed to support the growth of Nigeria’s local gold industry by using modern processing methods and reducing the country’s dependence on exporting raw gold.
Nigeria is believed to have large deposits of gold, especially in states such as Zamfara, Kebbi, Niger, Kaduna, and Osun. For many years, most of the gold mined in the country has been exported in raw form or traded illegally, denying the country revenue and jobs.
Successive governments have said that developing the solid minerals sector is key to diversifying the economy away from oil. As part of this effort, the Federal Government has encouraged value addition, which means processing minerals locally instead of exporting them in their raw state.
Tomori said the Lagos gold refinery fits into this value-addition policy, which aims to boost local manufacturing, create jobs, and increase government revenue.
“The value-addition policy of the Federal Government seeks to stop the export of raw minerals and encourage local processing and manufacturing,” he said.
He noted that the policy has already attracted major investments into the mining sector and led to the establishment of several mineral processing plants across the country.
According to him, some of the key projects include a $600 million lithium processing plant in Nasarawa State, a $400 million rare earth minerals processing plant also in Nasarawa, and a $200 million ASBA lithium plant in Abuja.
“These projects show that investments in mineral processing are not limited to one region. They are spread across different parts of the country,” Tomori said.
He further stated that reforms carried out by the Ministry of Solid Minerals Development over the past two years have improved confidence in the mining sector and encouraged private sector participation.
These reforms include tighter regulation, improved licensing processes, efforts to tackle illegal mining, and stronger engagement with investors and host communities.
In recent years, the Federal Government has increased efforts to reposition the sector as a major source of revenue and employment. The Ministry of Solid Minerals Development has said its goal is to make mining contribute significantly to the country’s Gross Domestic Product.
Tomori urged the Northern Elders Forum to reconsider its position and work with the Federal Government to promote national unity and economic growth.
“We urge NEF to turn a new leaf and join the efforts of President Bola Ahmed Tinubu to build a stronger, self-reliant economy that serves the interests of all Nigerians,” he said.
They note that clear communication from government agencies is important to prevent misunderstanding and maintain public trust.
For now, the Ministry of Solid Minerals Development insists that no government-owned gold refinery has been sited in Lagos and that the project at the centre of the debate is a private investment aimed at supporting Nigeria’s mining value chain.
The ministry says it remains committed to encouraging mining and processing projects in all parts of the country, in line with the Federal Government’s broader economic diversification agenda.