The Federal Ministry of Solid Minerals Development has dismissed claims by the Northern Elders Forum (NEF) that the Federal Government violated the federal character principle by siting a gold refinery in Lagos.
The ministry described the allegation, credited to a statement signed by NEF spokesperson, Prof. Abubakar Jiddere, as “false and misleading.”
In a statement issued in Abuja, the Special Assistant to the Minister of Solid Minerals Development, Segun Tomori, said the Minister, Dele Alake, never announced that the Federal Government owned or established a gold refinery in Lagos or anywhere else in the country.
“There was nowhere in the minister’s announcement where he said the Federal Government owns or established a gold refinery in Lagos or any other part of the country,” Tomori said.
He explained that Alake was clear during the announcement of the proposed inauguration of the refinery that several gold refineries are being developed across Nigeria and that all of them are privately owned.
“The minister was clear, concise and emphatic that the refinery in question, as well as others in the pipeline across the country, are privately owned initiatives,” he added.
According to Tomori, the Lagos refinery is an initiative of Kian Smith, a fully private mining company, aimed at boosting Nigeria’s local gold industry through innovative processing practices.
“The Federal Government does not compel private companies to site their operations in any specific part of the federation. Such decisions are based on individual operational and market strategies,” he said.
He also praised the perseverance and leadership of the company’s founder and Managing Director, Nere Emiko, for delivering what he described as a flagship project after years of sustained effort.
Tomori noted that the refinery aligns with the Federal Government’s value-addition policy in the solid minerals sector, which seeks to discourage the export of raw minerals while promoting local processing and manufacturing.
“This policy has stimulated the conversion of raw mineral exports into processing factories across the country, resulting in massive inflows of foreign capital and the creation of thousands of jobs,” he said.
He cited major investments such as the $600 million lithium plant in Nasarawa State, a $400 million rare earth plant also in Nasarawa, and the $200 million ASBA lithium plant in Abuja as evidence of the policy’s impact.
The ministry said reforms introduced over the past two years have created an enabling environment for private sector participation and growth in the mining industry.
“The Lagos gold refinery and similar projects are clear evidence that the reforms in the solid minerals sector are working,” Tomori stated.
He added that the ministry would continue to encourage mining companies to establish processing and manufacturing plants across the country and urged the Northern Elders Forum to support efforts aimed at strengthening Nigeria’s economy.
“We urge the Northern Elders Forum to join hands with the Federal Government in building an economy that truly serves the needs of Nigerians,” Tomori said.
