The Federal Government has issued a strong response to criticism from the Northern Elders Forum (NEF) regarding the reported siting of a proposed national gold refinery in Lagos State.
Northern Elders Raise Constitutional Concerns
In an open letter dated January 18, 2026, and signed by its spokesperson, Professor Abubakar Jika Jiddere, the NEF accused the government of undermining key constitutional principles. The forum argued that situating a "national gold refinery" in Lagos contradicts the tenets of equity, federal character, and derivation, given that the nation's primary gold deposits are located in the northern region.
The elders contended that resource-bearing regions deserve the benefits of value addition, job creation, and industrial development. They listed northern states like Zamfara, Kebbi, Niger, Kaduna, and Katsina as major gold-producing areas that endure environmental and security costs without reaping industrial rewards.
The NEF warned that the decision could deepen structural inequality and regional imbalance, fueling resentment and weakening trust in Nigeria's federal system. They advocated for international best practices, which favour locating refining facilities close to mining sites to reduce costs and curb smuggling.
Federal Government's Firm Rebuttal
Reacting swiftly, the Federal Government, through Segun Tomori, spokesperson for the Minister of Solid Minerals Development, described the NEF's claims as misleading. The government clarified that it neither established nor owns the gold refinery in question.
Tomori explained that the refinery is a private sector investment by Kian Smith Company FZE, with no federal equity involvement. He stated that the company began construction in Ogun State before relocating to Lagos in 2021 due to business considerations, completing the project in 2025.
"The gold refinery is not a Federal Government initiative. It is a private sector project. The government’s role is limited to providing an enabling environment for investors," Tomori emphasized.
Regional Reactions and Broader Context
The controversy has drawn reactions from other northern stakeholders. The Zamfara State Government, through its Commissioner for Information, Mahmud Muhammad Dantawasa, labelled the refinery's location in Lagos as unjust. Dantawasa warned of security and logistical challenges in transporting gold from Zamfara to Lagos and called for a review.
However, the Northern States’ Governors Forum indicated it had not yet taken a collective position. Its spokesman, Ismaila Uba Misilli, said the governors would deliberate on the matter before making an official pronouncement.
In its defence, the Ministry of Solid Minerals Development reiterated that its policy encourages value addition across the country. Tomori pointed to other mining and processing facilities located in the North, including lithium plants in Nasarawa State and an iron ore facility in Kaduna, as evidence against claims of industrial concentration in Lagos.
The Ministry framed the Lagos refinery as a success of its value-addition policy, which has attracted private investments, and urged stakeholders to support reforms for a stronger national economy.
