The Federal Government has refuted claims that it intends to establish a gold refinery in Lagos, dismissing the allegation as inaccurate and misleading. The clarification followed a warning by the Northern Elders Forum (NEF), which had argued that locating a gold refinery in Lagos would breach the federal character principle.
In a statement issued on Sunday, Segun Tomori, Special Assistant on Media to the Minister of Solid Minerals Development, Dr. Dele Alake, said the minister never claimed that the Federal Government owns or is setting up a gold refinery in Lagos or any other part of the country. He explained that the refinery at the centre of the controversy is a purely private-sector initiative.
According to Tomori, the proposed gold refinery is being developed by Kian Smith, a private company, and not by the Federal Government. He stressed that the Ministry of Solid Minerals Development has no legal authority to determine where a private investor should locate its business operations.
He clarified that during the announcement of the refinery’s planned inauguration, the minister clearly stated that several gold refineries are being developed across different parts of the country, all of them privately owned by various investors. This, he said, underscores the government’s commitment to encouraging private sector participation rather than directly owning such facilities.
Tomori further noted that the Federal Government does not compel private companies to site their projects in specific locations. Instead, investors make such decisions based on factors such as logistics, infrastructure, operational efficiency, and access to markets. He added that this approach is consistent with global best practices in investment promotion.
The media aide explained that the Lagos refinery aligns with the Federal Government’s value-addition policy in the solid minerals sector. This policy, he said, is aimed at reducing the export of raw minerals and promoting local processing, refining, and manufacturing in order to grow the economy and create jobs.
According to Tomori, the policy has already begun to yield tangible results, leading to the establishment of several mineral processing and refining plants across the country. These projects, he said, have attracted substantial foreign direct investment and created thousands of employment opportunities for Nigerians.
He cited major investments such as a $600 million lithium processing plant in Nasarawa State, a $400 million rare-earth minerals processing facility also in Nasarawa, and a $200 million ASBA lithium plant in Abuja as evidence of the policy’s success. He added that these developments demonstrate the growing confidence of investors in Nigeria’s solid minerals sector.
Tomori attributed this progress to sustained reforms implemented by the Ministry of Solid Minerals Development over the past two years, which he said have significantly improved the business environment for mining and mineral processing companies. According to him, these reforms have made the sector more attractive to both local and international investors.
He described projects like the privately owned Lagos gold refinery as clear indicators of the positive impact of the government’s reforms and commitment to economic diversification.
Reaffirming the ministry’s stance, Tomori said the Federal Government would continue to support and encourage mining companies to establish processing and manufacturing facilities across all regions of the country. He also called on the Northern Elders Forum to support ongoing efforts by President Bola Ahmed Tinubu’s administration to build a stronger, more self-reliant economy that benefits all Nigerians.
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