FG denies citing Federal Gold Refinery in Lagos, says project privately owned

The Federal Ministry of Solid Minerals Development has dismissed claims by the Northern Elders Forum (NEF) that the Federal Government violated the federal character principle by siting a gold refinery in Lagos, describing the allegation as a misrepresentation of facts.

The clarification was contained in a statement issued on Sunday in Abuja by the Special Assistant on Media to the Minister of Solid Minerals Development, Mr. Segun Tomori.

According to the ministry, the claims arose from a misunderstanding of comments made by the Minister, Dr. Dele Alake, on the inauguration of a gold refinery project and the broader reforms underway in Nigeria’s solid minerals sector.

The ministry stressed that at no point did the minister announce that the Federal Government owned, established or sited a gold refinery in Lagos or anywhere else in the country.

“There was nowhere in the minister’s announcement that the Federal Government owned or established a gold refinery in Lagos or anywhere for that matter,” Tomori said. “

Dr. Dele Alake was clear, concise and emphatic that the refinery being inaugurated is privately owned, and that other gold refineries being developed across the country are also private initiatives by different companies.”

According to the ministry, the newly established gold refinery in Lagos is an initiative of Kian Smith, a fully privately owned mining company, and forms part of efforts to develop Nigeria’s local gold industry through innovation and value addition.

Tomori explained that the Federal Government does not direct or compel private companies on where to locate their operations, noting that such decisions are driven by each firm’s operational, logistical and marketing strategies to ensure commercial viability.

He added that the government merely acknowledged the resilience and commitment of the company’s founder and Managing Director, Ms. Nere Emiko, for delivering what he described as a flagship project after years of perseverance, enterprise and leadership.

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The ministry said the refinery aligns with the Federal Government’s value-addition policy in the solid minerals sector, which is aimed at discouraging the export of raw minerals and promoting local processing and manufacturing.

According to the statement, the reforms have begun to yield results, with increased investment in mineral processing facilities across the country, the attraction of foreign capital and the creation of jobs.

The ministry noted that the controversy underscores the need to clearly distinguish between government-owned projects and private sector investments, particularly at a time when policy reforms are deliberately designed to enable private participation rather than expand centralised government control.

“Correcting this misinformation is important to ensure the public understands that current reforms are focused on creating an enabling environment for private investors, not on the Federal Government owning or controlling industrial projects,” the statement said.

The Federal Government had earlier announced the commencement of operations at a high-purity gold refining plant in Lagos. It also disclosed progress on three additional gold refineries at various stages of development in different parts of the country, as well as a $600 million lithium processing plant in Nasarawa State that is ready for commissioning.

According to the ministry, these projects reflect the growing impact of policy reforms aimed at repositioning Nigeria’s solid minerals sector as a key driver of industrialisation, export diversification and sustainable economic growth.