The Federal Government has dismissed claims by the Northern Elders Forum (NEF) that a gold refinery recently commissioned in Lagos was sited by the government in violation of the federal character principle, describing the allegation as false and misleading.
In a statement issued on Sunday, Segun Tomori, Special Assistant on Media to the Minister of Solid Minerals Development, clarified that the gold refinery was neither owned nor established by the Federal Government, but is a purely private-sector initiative by Kian Smith Co, a wholly Nigerian-owned mining company.
The ministry was responding to a statement credited to the Northern Elders Forum, signed by its spokesperson, Professor Abubakar Jika Jiddere, which criticised the location of the refinery in Lagos and alleged a breach of federal character principles.
According to the ministry, the Minister of Solid Minerals Development, Dele Alake, had clearly stated during the refinery’s announcement that the facility was privately owned, adding that several other gold refineries being developed across the country are also private investments.
“The Federal Government did not site a gold refinery in Lagos or anywhere else,” the statement said, stressing that private companies determine the location of their investments based on operational and commercial considerations.
The ministry said the Lagos refinery reflects the success of its value-addition policy, introduced two years ago to discourage the export of raw minerals and promote local processing and manufacturing within Nigeria.
It noted that the policy has attracted significant private investment into the sector, including a $600 million lithium processing plant and a $400 million rare earth elements plant in Nasarawa State, as well as a $200 million lithium facility by ASBA Group in Abuja.
The Federal Government also congratulated the founder and managing director of Kian Smith Co, Nere Emiko, for what it described as years of perseverance and leadership in delivering the refinery project.
Criticising the NEF, the ministry said it was surprising that the group failed to conduct basic due diligence before issuing its statement, arguing that no government has the authority to compel a private company to locate its operations in a particular part of the country.
The ministry reaffirmed its commitment to creating an enabling environment for private-sector participation in the mining industry and urged stakeholders, including the NEF, to support ongoing reforms aimed at strengthening Nigeria’s non-oil economy.
It called on all groups to align with the economic development agenda of President Bola Ahmed Tinubu, focused on building a self-reliant economy through industrialisation and value addition in the solid minerals sector.
