The Federal Government has denied reports suggesting it established a gold refinery in Lagos, describing the claim as inaccurate and misleading.
The clarification followed an allegation by the Northern Elders Forum (NEF), which accused the government of violating the federal character principle by siting a gold refinery in Lagos. The claim was contained in a statement attributed to the group’s spokesperson, Prof. Abubakar Jiddere.
Responding in a statement issued in Abuja, the Federal Ministry of Solid Minerals Development said no such government-owned refinery exists. The Special Assistant to the Minister of Solid Minerals Development, Segun Tomori, stressed that the Minister, Dele Alake, never announced that the Federal Government owned or established a gold refinery in Lagos or anywhere else in the country.
“At no point did the minister state that the Federal Government owns or has established a gold refinery in Lagos or any other location,” Tomori said.
He explained that the minister’s remarks, made during an announcement on the planned inauguration of a gold refinery, were misinterpreted. According to him, Alake clearly stated that the refinery, along with others under development nationwide, are private sector initiatives owned by different companies.
Tomori disclosed that the Lagos-based refinery referenced in the reports is an initiative of Kian Smith, a wholly private mining company, aimed at boosting Nigeria’s domestic gold processing capacity.
“The Federal Government does not dictate where private investors should site their businesses. Such decisions are driven by operational considerations and market strategy,” he said.
He added that the government merely acknowledged the effort and persistence of the company’s founder and managing director, Nere Emiko, describing the refinery as the outcome of years of private investment and enterprise.
The ministry further noted that the project aligns with the Federal Government’s value-addition policy in the solid minerals sector, which prioritises local processing over the export of raw minerals.
According to Tomori, the policy has attracted significant private investment across the country, citing projects such as the $600 million lithium processing plant in Nasarawa State, a $400 million rare earth elements facility also in Nasarawa, and the $200 million ASBA lithium plant in Abuja.
He said reforms introduced by the ministry in the past two years have created a more conducive environment for private sector participation in mining and mineral processing.
“The emergence of projects like the Lagos gold refinery demonstrates that these reforms are yielding results,” Tomori stated.
He urged the Northern Elders Forum and other stakeholders to support government efforts aimed at strengthening the economy through industrialisation and local value addition in the mining sector.
“We encourage all groups to work with the Federal Government in building a resilient and self-reliant Nigerian economy,” he added.