The Federal Ministry of Solid Minerals Development has dismissed claims by the Northern Elders Forum (NEF) that the Federal Government sited a gold refinery in Lagos in violation of the federal character principle.
The clarification was made 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 allegation misrepresents comments made by the Minister, Dr Dele Alake, regarding the inauguration of a gold refinery project and the broader reforms in Nigeria’s solid minerals sector.
What FG is saying
The Ministry insists that at no point did the Minister announce that the Federal Government owned or established a gold refinery in Lagos.
“There was nowhere in the Minister of Solid Minerals announcement that the Federal Government owned or established a gold refinery in Lagos or anywhere for that matter.
“Dr Dele Alake was very clear, concise and emphatic in the announcement of the proposed inauguration of the refinery, that other gold refineries are in the works across the country and all privately-owned by different companies,” he said.
Tomori said the newly established gold refinery was an initiative of Kian Smith, a fully privately-owned mining company, aimed at developing the local gold industry through innovative practices.
He explained that the Federal Government does not compel private companies to locate their operations in any particular part of the federation, as each firm has its own operational and marketing strategy to ensure profitability.
He said the Federal Government acknowledged the doggedness of the company’s founder and Managing Director, Ms Nere Emiko, for delivering a flagship project after years of perseverance, enterprise and leadership.
According to him, the refinery reflects the solid minerals sector’s response to the value-addition policy introduced to discourage the export of raw minerals and to promote local processing and manufacturing.
Why this matter
The clarification highlights the distinction between government-owned projects and private sector investments in Nigeria’s solid minerals sector.
- The Ministry noted that the gold refinery reflects the sector’s response to the value-addition policy designed to discourage the export of raw minerals.
- It said the policy encourages local processing and manufacturing, with the aim of strengthening domestic industrial capacity.
- The reforms have reportedly stimulated the conversion of raw mineral exports into processing facilities across the country, attracting foreign capital and creating jobs.
By correcting what it described as misinformation, the Ministry said it was necessary to maintain public understanding of how policy reforms are driving private investment rather than centralised government control.
What you should know
The Federal Government earlier said it had commenced operations at a high-purity gold refining plant in Lagos.
Aside from the Lagos refining plant, the federal government announced progress on three additional gold refineries at different stages of development across the country and a $600 million lithium processing plant in Nasarawa State that is ready for commissioning.
