FG Responds as Northern Elders Fault Alleged Location of Proposed 'National Gold Refinery' in Lagos
- The Northern Elders Forum criticised the siting of a proposed gold refinery in Lagos, citing constitutional principles of equity and derivation
- NEF accused the Government of undermining constitutional principles of equity, federal character, and derivation
- Meanwhile, the federal government has reacted to criticism from the NEF and clarified the matter
Legit.ng's Muslim Muhammad Yusuf is a 2025 Wole Soyinka Award-winning journalist with over 8 years of experience in investigative reporting, human rights, politics, governance and accountability in Nigeria.
The Federal Government has reacted to criticism from the Northern Elders Forum (NEF) over the reported location of a proposed national gold refinery in Lagos state.
The NEF had accused the Federal Government of undermining constitutional principles of equity, federal character, and derivation by situating what it described as Nigeria’s “national gold refinery” in Lagos, despite the concentration of gold deposits in northern states.
Source: Twitter
In an open letter dated January 18, 2026, and signed by its spokesperson, Professor Abubakar Jika Jiddere, the forum addressed President Bola Ahmed Tinubu and members of the Federal Executive Council, warning that the decision could deepen structural inequality and regional imbalance.
The elders argued that locating gold refining infrastructure far from mining communities contradicts constitutional provisions on federal character, economic justice, and derivation, stressing that resource-bearing regions deserve value addition, jobs, and industrial development.
They cited northern states such as Zamfara, Kebbi, Niger, Kaduna and Katsina as major gold-producing areas that have borne the environmental and security costs of mining but continue to be excluded from industrial benefits.
According to the NEF, international best practices favour locating refining and processing facilities close to mining sites to reduce logistics costs, curb smuggling, strengthen oversight, and promote regional industrialisation.
The forum warned that concentrating strategic economic infrastructure in Lagos would worsen spatial inequality, fuel resentment, and weaken trust in Nigeria’s federal system.
It therefore called for at least one primary gold refinery to be sited within the northern gold belt, with Lagos limited to trading or export functions if necessary.
FG says project is private sector–driven
Reacting to the allegations, the Federal Government described the claims as misleading, stressing that it neither established nor owns the gold refinery.
Speaking through the spokesperson of the Minister of Solid Minerals Development, Segun Tomori, the government said the refinery is a private investment by Kian Smith Company FZE, with no federal equity involvement.
“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 said.
He explained that the company initially began construction in Ogun State before relocating to Lagos in 2021 due to business considerations, completing the project in 2025.
Source: Twitter
As reported by Daily Trust, Tomori also rejected claims of industrial concentration in Lagos, pointing out that several mining and processing facilities are located in the North, including lithium plants in Nasarawa State and an iron ore processing facility in Kaduna State.
He added that the Ministry of Solid Minerals Development operates under a cooperative federalism framework that encourages all 36 states to participate in mining and mineral processing.
Northern governors yet to take position
Meanwhile, the Northern States’ Governors Forum said it had not taken a collective position on the matter.
The forum’s spokesman, Ismaila Uba Misilli, said the governors would deliberate on the issue before making any official pronouncement, noting that the forum remains committed to protecting regional interests.
Zamfara govt alleges unfair treatment
According to Daily Trust, the Zamfara State Government also criticised the location of the refinery in Lagos, describing it as unjust and unfair.
The state’s Commissioner for Information, Mahmud Muhammad Dantawasa, argued that Zamfara, being one of Nigeria’s largest gold-producing states, is better suited to host such a facility.
He warned that transporting gold from Zamfara to Lagos could pose security and logistical challenges and called on the Federal Government to reconsider the decision.
Similarly, the Commissioner for Commerce and Industry, Abdulrahman Tumbido, aligned the state with the NEF’s position, urging the government to review the refinery’s location in the interest of fairness and economic justice.
Ministry dismisses federal character violation claims
In a separate statement, the Ministry of Solid Minerals Development again dismissed claims that the refinery violated the federal character principle, insisting that the minister never announced the establishment of a government-owned refinery in Lagos.
According to PREMIUM TIMES, Tomori said the refinery reflects the success of the government’s value-addition policy in the solid minerals sector, which has attracted major private investments, including lithium and rare-earth processing plants in Nasarawa State and Abuja.
He said the ministry would continue to encourage private investors to establish processing and manufacturing plants across the country, urging stakeholders, including the NEF, to support reforms aimed at building a stronger and more self-reliant Nigerian economy.
FG unveils gold refinery
Legit.ng earlier reported that the federal government has confirmed the start of operations at a high-purity gold refinery in Lagos, alongside progress on three additional gold refineries and a $600 million lithium processing plant in Nasarawa State that is ready for commissioning.
Officials say the projects signal a decisive shift toward local processing of solid minerals and stronger participation in global clean energy supply chains.
Source: Legit.ng
