The Federal Ministry of Solid Minerals Development has firmly rejected allegations by the Northern Elders Forum (NEF) that the Federal Government plans to establish a gold refinery in Lagos, describing the claim as false and mischievous.
NEF, in a statement issued by its spokesperson, Prof. Abubakar Jika Jiddere, had accused the Federal Government of siting a gold refinery in Lagos, alleging that the move violated the principle of federal character.
However, responding to the allegation, the Special Assistant to the Minister on Media, Segun Tomori, clarified that the refinery in question is entirely a private sector initiative with no financial involvement from the Federal Government.
“There is no iota of truth in the allegation,” Tomori said. “The new gold refinery is the initiative of Kian Smith, a 100 per cent privately owned mining company, established to promote the development of the local gold industry through innovative practices.”
The ministry further stressed that the Minister of Solid Minerals Development, Dr. Dele Alake, never at any point announced or suggested that the Lagos refinery was a government-owned project. According to the statement, the minister was explicit that several gold refineries are being developed across the country, all driven by private investors.
Dr. Alake, the ministry noted, had clearly stated that additional privately owned gold refineries are underway in different parts of Nigeria as part of ongoing reforms in the solid minerals sector.
Expressing disappointment at NEF’s position, the ministry said it was “shocked at the debilitating degeneration in the quality of leadership” of the forum, which it said once played a critical role in national discourse.
“How could the NEF expect the Federal Government to compel a private company to locate its operations in a particular part of the federation, when companies make location decisions based on operational and marketing strategies to ensure profitability?” the statement queried.
The ministry explained that its reforms over the past two years have focused on creating an enabling environment for private sector participation, with the Lagos gold refinery serving as evidence of the success of those policies.
It also faulted NEF for failing to conduct basic research before making what it described as “embarrassing and misleading” claims, adding that such actions could only amount to deliberate mischief and an attempt to sow mistrust.
Reassuring stakeholders and potential investors, the ministry reaffirmed its commitment to encouraging mining companies to establish processing and manufacturing plants across the country.
It urged the NEF to support the economic vision of President Bola Ahmed Tinubu aimed at building a stronger and more self-reliant Nigerian economy.
The ministry also congratulated the founder and Managing Director of the refinery, Nere Emiko, for her resilience and leadership in delivering the project after years of perseverance.
According to the statement, the refinery aligns with the ministry’s Value Addition policy introduced two years ago, which discourages the export of raw minerals and promotes local processing and manufacturing.
The policy, the ministry added, has already attracted significant investments, including a $600 million lithium processing plant in Nasarawa State, a $400 million rare earth metals facility also in Nasarawa, and a $200 million ASBA lithium plant in Abuja, generating thousands of jobs and substantial foreign capital inflows.