FG Denies Federal Character Breach, Says Lagos Gold Refinery Is Privately Owned
The Federal Government has dismissed claims by the Northern Elders Forum (NEF) that it violated the federal character principle by siting a gold refinery in Lagos State, clarifying that no gold refinery owned by the Federal Government exists in Lagos or anywhere else in the country.
The Federal Ministry of Solid Minerals Development (MSMD) made the clarification in a statement issued on Sunday by the Special Assistant on Media to the Minister, Mr. Segun Tomori, describing the allegation by NEF as “false and misleading.”
According to the Ministry, the gold refinery cited by NEF is a wholly private-sector initiative developed by Kian Smith, a 100 per cent privately owned Nigerian mining company, and not a federal government project.
“There is no federal government–owned gold refinery in Lagos State or anywhere else in Nigeria,” the statement said, adding that at no time did the Minister of Solid Minerals Development, Dr. Dele Alake, announce the establishment or ownership of a gold refinery by the Federal Government.
The Ministry explained that the refinery aligns with the government’s value-addition policy in the mining sector, which encourages local processing of minerals rather than the export of raw materials. The policy, introduced two years ago, aims to attract private investment, boost industrialisation, create jobs, and increase foreign capital inflows.
MSMD noted that similar private-sector-led projects have emerged across the country as a result of the policy, including a $600 million lithium processing plant in Nasarawa State, a $400 million rare earth minerals plant also in Nasarawa, and a $200 million ASBA lithium plant in Abuja.
The Federal Government commended the Founder and Managing Director of Kian Smith, Ms. Nere Emiko, for what it described as resilience and leadership in delivering the refinery after years of perseverance, stressing that the project reflects growing investor confidence in Nigeria’s mining reforms.
Reacting sharply to the NEF’s position, the Ministry questioned the rationale behind expecting the Federal Government to dictate the location of private businesses.
“How could the NEF expect the Federal Government to force a private company to locate its operations in a particular part of the federation when each company has its own operational and marketing strategy to ensure profitability?” Mr. Tomori said.
He added that the Ministry was “shocked” by what it described as NEF’s failure to conduct basic due diligence before making public claims capable of fueling regional mistrust.
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The Ministry reaffirmed its commitment to creating an enabling environment for mining investments across all regions of the country and called on the NEF to support ongoing reforms under President Bola Tinubu’s administration aimed at building a self-reliant and diversified Nigerian economy.
MSMD stressed that the success of private processing facilities, including the Lagos gold refinery, demonstrates the effectiveness of its policies and the growing transformation of Nigeria’s solid minerals sector.
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