The Federal Government has issued a firm rebuttal to claims that it violated the federal character principle by locating Nigeria's inaugural gold refinery in Lagos. Government officials have clarified that the facility is entirely a private-sector venture and not a federal project.
NEF's Allegations and the Government's Rebuttal
This clarification was prompted by a statement from the Northern Elders Forum (NEF), through its spokesperson Abubakar Jiddere, which suggested that situating the refinery in Lagos disadvantaged other regions, particularly the North. Responding on Sunday, Segun Tomori, Special Assistant on Media to the Minister of Solid Minerals Development, Dr. Dele Alake, labeled the allegations as "false, misleading and rooted in a misunderstanding of basic facts."
Tomori explicitly stated, "There is no iota of truth in the allegation." He explained that the refinery was initiated and developed by Kian Smith, a mining company that is 100 per cent privately owned. He stressed that the Minister never claimed federal government ownership of a gold refinery in Lagos or anywhere else.
Private Investment Drives Location and Growth
The ministry questioned the logic behind NEF's expectations, asking how the government could dictate the operational location of a private business. "Each company has its own operational and marketing strategy to ensure profitability," Tomori noted, emphasizing that investors choose sites based on logistics, infrastructure, market access, and cost efficiency.
Tomori highlighted that the Lagos gold refinery is a direct result of the ministry's value-addition policy, launched two years ago to discourage raw mineral exports and promote local processing. This policy has spurred significant investments nationwide, including:
- A $600 million lithium processing plant in Nasarawa State, ready for commissioning.
- A $400 million rare earth minerals plant also in Nasarawa.
- A $200 million lithium facility in Abuja.
These projects, according to the government, have attracted foreign capital and created thousands of jobs.
Sharp Criticism and a Call for National Support
In a strongly worded segment of the response, Tomori criticized the NEF, describing the group as a "shadow of its former self" that had "become a parody of its pioneers" due to what he termed careless and inflammatory statements.
The ministry reaffirmed its commitment to fostering a private-sector-friendly environment in mining. It urged all stakeholders to support President Bola Tinubu's drive for a stronger, more self-reliant Nigerian economy, noting that more processing plants are expected across the country as sectoral reforms deepen.
The government also revealed that alongside the now-operational Lagos plant, three additional gold refineries are at various stages of development across Nigeria, all driven by private investors.
