FG Denies NEF Claim Over Lagos Gold Refinery, Confirms Private Ownership
The Federal Ministry of Solid Minerals Development has dismissed claims by the Northern Elders Forum (NEF) that the Federal Government is establishing a “National Gold Refinery” in Lagos, calling the allegations misleading.
The controversy arose after the Minister of Solid Minerals Development, Dr. Dele Alake, announced during a meeting with Saudi Arabia’s Minister of Industry and Mineral Resources, Ibrahim Al-Khorayef, that operations had commenced at a high-purity gold refinery in Lagos. The minister also revealed that three additional gold refineries are in various stages of development nationwide, alongside a $600 million lithium processing plant in Nasarawa State ready for commissioning.
NEF Raises Federal Character Concerns
In an open letter dated January 18, 2026, and addressed to President Bola Ahmed Tinubu and the Federal Executive Council, NEF alleged that situating the refinery in Lagos violated the federal character principle, which aims to ensure equity and inclusive development across Nigeria. The letter, titled “Open Letter to the Federal Government of Nigeria on the Location of the National Gold Refinery, Federal Character, Derivation and the Deepening Crisis of Structural Inequality,” argued that northern states, which supply much of the nation’s gold, are being bypassed in favor of Lagos.
The forum warned that refining gold far from its source perpetuates an extractive model reminiscent of colonial times, where raw materials are sent from peripheries to central hubs for value addition. NEF cited northern states like Zamfara, Kebbi, Niger, Kaduna, and Katsina as regions that have borne the environmental, social, and security costs of unregulated mining, yet are excluded from major industrial projects that could create skilled jobs and promote technology transfer.
FG Clarifies: Lagos Refinery Privately-Owned
Responding to NEF’s claims, Mr. Segun Tomori, Special Assistant to Minister Alake, stated on Sunday in Abuja that the Lagos refinery is entirely a private initiative by Kian Smith, a fully privately-owned mining company. He emphasized that the Ministry does not direct investors on where to locate their projects.
“Dr. Dele Alake was very clear that other gold refineries are underway across the country and are all privately owned by different companies,” Tomori said. He added that the Lagos refinery is aimed at developing the local gold industry through innovative practices.
Tomori praised the founder and Managing Director, Ms. Nere Emiko, for delivering a flagship project after years of persistence and leadership. According to him, the refinery exemplifies the solid minerals sector’s response to the value-addition policy, which seeks to reduce raw mineral exports while promoting local processing and manufacturing.
He also noted that similar projects have attracted massive foreign capital and created thousands of jobs, citing a $600 million lithium plant and a $400 million rare-earth plant in Nasarawa, as well as a $200 million ASBA lithium plant in Abuja.
“The Ministry of Solid Minerals Development will continue to encourage mining companies to establish processing and manufacturing plants nationwide,” Tomori said. He urged NEF to reconsider its stance and align with President Tinubu’s vision of a self-reliant and inclusive economy.
Looking Ahead
While NEF maintains concerns about regional equity, the Federal Government maintains that private investments such as the Lagos refinery do not contravene federal character principles and represent a positive step for the sector.
The debate raises broader questions about balancing private investment with regional development in Nigeria’s mining industry.
