The Federal Ministry of Solid Minerals Development has come out to clear the air following recent claims by the Northern Elders Forum regarding the location of a new gold refinery. In a detailed response shared with Reports, the ministry debunked allegations that the Federal Government had established a refinery in Lagos in a way that ignores the federal character principle.
The controversy stems from a statement credited to the Northern Elders Forum spokesperson, Professor Abubakar Jiddere. However, Segun Tomori, the Special Assistant to the Minister of Solid Minerals Development, Dr. Dele Alake, clarified that these claims are entirely misleading. He noted that the government does not own or establish these refineries; rather, they are private sector initiatives that the ministry simply supports through policy reforms.
The specific facility in question is owned by Kian Smith, a fully private mining company. The ministry explained that the government does not dictate where a private firm should set up its operations, as those decisions are based on the company’s own marketing and operational strategies for profitability. The ministry actually commended the company’s leadership for their perseverance in bringing such a flagship project to life after years of hard work.
This development is part of a broader “value-addition” policy designed to stop the export of raw minerals and encourage local processing. This shift has already triggered a wave of industrial growth across Nigeria. Examples include a $600 million lithium plant and a $400 million rare earth plant, both in Nasarawa State, as well as a $200 million lithium facility in Abuja.
The ministry emphasized that its role over the last two years has been to create an environment where the private sector can thrive. They pointed out that the Lagos refinery and several other upcoming projects across the federation are proof that these reforms are working. The goal is to move away from being a raw-material exporter and instead become a hub for mineral manufacturing, which creates jobs and attracts foreign capital.
While urging the Northern Elders Forum to verify facts before making public statements, the ministry reiterated its commitment to supporting any mining company looking to set up processing plants anywhere in the country. The government’s focus remains on building a self-reliant economy that serves all Nigerians, regardless of geography.
