Reported by: Ijeoma G | Edited by: Gabriel Osa
The Federal Ministry of Solid Minerals Development has formally dismissed assertions by the Northern Elders Forum (NEF) that the Federal Government breached the federal character principle by siting a gold refinery in Lagos State. In a statement issued in Abuja, the ministry described the NEF’s allegations as false, misleading and based on a misrepresentation of the facts surrounding the project.
Responding to a public letter and concerns raised by the NEF, the ministry clarified that at no point did the Minister of Solid Minerals Development, Dr. Dele Alake, announce that the gold refinery was owned, established or funded by the Federal Government. Instead, officials emphasised that the refinery is a 100 per cent private sector initiative undertaken by Kian Smith, a privately owned mining company focused on developing Nigeria’s local gold sector.
According to the ministry’s statement, the refinery’s location — including its presence in Lagos — was determined entirely by the private company’s business and operational strategy, rather than being imposed or directed by the federal government. Nigerian law and policy, the ministry said, do not empower the government to dictate where a private firm must site its operations, noting that such decisions typically reflect market considerations and logistical planning by private investors.
Officials also reaffirmed that the Minister’s comments about the gold refinery were contextualised within broader reforms in the solid minerals sector aimed at encouraging value addition, local processing and private investment. The ministry noted that gold refining and other mineral processing activities are being pursued nationwide by different private investors in line with national policy objectives to discourage raw mineral exports and strengthen local industry.
In its rebuttal, the ministry highlighted that Dr. Alake had clarified that additional refineries are underway in other parts of Nigeria, all of which are privately owned and developed. It also pointed to significant private and foreign investment across the minerals sector — including lithium and rare earth processing plants in Nasarawa State and Abuja — to illustrate the positive impact of policy reforms on industrial growth.
The NEF’s contention stemmed from a published letter asserting that the placement of a refinery in Lagos — despite the concentration of commercially viable gold deposits in northern Nigeria — contravenes constitutional principles designed to promote equitable distribution of national assets. However, the ministry labelled the claim as unfounded, stressing that the government neither owned the facility nor directed its location.
Instead of suggesting government control, officials encouraged private sector leadership and investment in mineral processing while reaffirming the Federal Government’s role in creating an enabling environment for such ventures. They also urged stakeholder groups to support national development efforts rather than advance narratives that could misinterpret private business decisions as governmental policy breaches.
The ministry’s response underscores its position that the refinery in Lagos is part of a market-driven expansion of the mining value chain, rooted in national objectives for industrialisation and economic diversification, rather than a government-directed infrastructure deployment in breach of federal character norms.
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