FG Clarifies Ownership of Nigeria’s First Gold Refinery in Lagos
- Federal Government clarifies Lagos gold refinery is a private-sector initiative, not government-owned
- Northern Elders Forum's claims about regional disadvantage dismissed as misleading
- Government emphasizes commitment to private investment and national economic self-reliance
The Federal Government has dismissed claims that it violated the federal character principle by siting Nigeria’s first gold refinery in Lagos, insisting the facility is a private-sector project and not owned by the government.
The clarification followed allegations by the Northern Elders Forum (NEF), which suggested that the refinery’s location in Lagos disadvantaged other regions, particularly the North.
Source: Twitter
The claims were contained in a statement credited to NEF spokesperson, Abubakar Jiddere.
Responding on Sunday, Segun Tomori, Special Assistant on Media to the Minister of Solid Minerals Development, Dr Dele Alake, described the allegations as false, misleading and rooted in a misunderstanding of basic facts.
“Not a federal government project”
Tomori explained that the gold refinery in question was initiated and developed by Kian Smith, a mining company that is entirely privately owned.
“There is no iota of truth in the allegation,” he said. “The new gold refinery is the initiative of Kian Smith, a 100 per cent privately owned mining company established to support the development of Nigeria’s local gold industry through innovative practices.”
He stressed that at no point did the Minister of Solid Minerals Development claim that the federal government owned or established a gold refinery in Lagos or elsewhere in the country.
According to him, Dr Alake had been clear during the announcement that multiple gold refineries are in development across Nigeria, all driven by private investors with their own commercial strategies.
Why Lagos? Private business decisions
The ministry questioned why the NEF expected the federal government to dictate the location of a privately owned business.
“How could the NEF expect the federal government to force a private company to locate its operations in a particular area of the federation when each company has its own operational and marketing strategy to ensure profitability?” Tomori asked.
He added that such expectations betrayed a lack of basic due diligence, noting that private investors typically choose locations based on logistics, infrastructure, access to markets and cost efficiency.
Value addition at the heart of reforms
Tomori said the Lagos gold refinery is a direct outcome of the ministry’s value addition policy introduced two years ago.
The policy discourages the export of raw minerals and promotes local processing and manufacturing.
He explained that the reforms have triggered major investments across the country, including a $600 million lithium processing plant in Nasarawa State, a $400 million rare earth minerals plant also in Nasarawa, and a $200 million lithium facility in Abuja.
“These investments have generated significant foreign capital inflows and thousands of jobs for Nigerians,” he said.
Sharp words for NEF leadership
In unusually strong language, Tomori criticised the NEF, describing the group as a shadow of its former self.
He said the organisation, once known for thoughtful policy engagement, had “become a parody of its pioneers” due to what he described as careless and inflammatory statements.
Call for national support
The ministry reaffirmed its commitment to creating an environment that enables private-sector participation in mining. It urged stakeholders to support President Bola Tinubu’s push for a stronger, more self-reliant Nigerian economy.
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According to Tomori, more processing and manufacturing plants are expected nationwide as reforms continue to reshape the solid minerals sector.
Federal government launches high-purity gold refinery in Lagos
Legit.ng earlier reported that the federal government has announced the commencement of operations at a high-purity gold refining plant in Lagos, with three additional gold refineries at different stages of development across the country.
The government also revealed that a $600 million lithium processing plant in Nasarawa State is ready for commissioning.
The Minister of Solid Minerals Development, Dele Alake, disclosed this on Tuesday, January 13 describing the projects as tangible outcomes of the government’s value-addition policy in the mining sector,
Source: Legit.ng
