In a significant move to protect the integrity of national policy and maintain public order, the Federal Ministry of Solid Minerals Development has formally stepped forward to debunk claims recently circulated by the Northern Elders Forum (NEF). The controversy stems from allegations made by the forum suggesting that the President Bola Ahmed Tinubu-led administration was planning to establish a state-owned gold refinery in Lagos. The Ministry has characterized these claims not only as factually incorrect but as fundamentally misleading to the Nigerian public.
The Genesis of the Dispute: Allegations by the Northern Elders Forum
The friction began following a public statement released by the Northern Elders Forum, signed by its spokesperson, Professor Abubakar Jiddere. In the communique, the NEF voiced strong opposition to what they perceived as a strategic move by the Federal Government to centralize mineral processing in the nation’s commercial hub, Lagos.
The forum argued that the establishment of such a facility in Lagos would be a direct violation of the “Federal Character Principle” a constitutional mandate designed to ensure equitable distribution of infrastructure and government presence across Nigeria’s diverse geopolitical zones. By suggesting that the government was the architect and owner of this refinery, the NEF implied a lack of regional balance in the administration’s industrialization efforts.
The Ministry’s Direct Rebuttal
Responding swiftly from the nation’s capital, Abuja, Segun Tomori, the Special Assistant on Media to the Minister of Solid Minerals Development, issued a comprehensive statement to set the record record straight. Tomori clarified that the premise of the NEF’s grievance was built upon a misunderstanding of the project’s ownership structure.
He emphasized that the Federal Government has neither founded nor taken ownership of any gold refinery in Lagos. Furthermore, he noted that the Minister of Solid Minerals Development, Dr. Dele Alake, has never made a public declaration suggesting the establishment of a government-owned refinery in that region. The core of the Ministry’s defense lies in the distinction between public policy and private enterprise. The specific facility referenced by the Northern Elders Forum is, in reality, a private venture spearheaded by Kian Smith, a reputable mining and mineral processing company. Tomori was firm in his assertion that under a free-market economy, the Federal Government does not possess the legal or administrative authority to dictate the geographical location of a private company’s operations. “At no point did Dr. Dele Alake state that the Federal Government owns or established a gold refinery in Lagos,” Tomori stated. “The refinery in question is a private venture. The government cannot, and will not, dictate to a private investor where to locate their business, provided they comply with the laws of the land.”
This distinction is crucial to the administration’s broader economic philosophy. By allowing private entities like Kian Smith to choose their locations based on logistical advantages such as proximity to ports or financial centers the government aims to foster an environment where business logic, rather than political maneuvering, drives industrial growth.
The “Value-Addition” Policy and National Economic Reform
While the government does not own the Kian Smith refinery, it does support it through its “Value-Addition” policy. For decades, Nigeria has suffered from the “resource curse,” where raw minerals are extracted and exported in their crude form, only to be imported back as expensive finished products. The current administration’s reforms are designed to break this cycle. The Value-Addition policy mandates that mining companies shift their focus toward local processing, smelting, and refining. This strategy is intended to:
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Retain Wealth: Keeping the processing stage within Nigerian borders ensures that the “markup” on finished minerals stays within the national economy.
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Job Creation: Refineries require skilled labor, engineering, and administrative support, providing thousands of jobs for Nigerian youths.
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Skill Transfer: Local processing encourages the development of technical expertise in metallurgy and mineralogy.
The Lagos-based refinery, therefore, is seen by the Ministry as a “flagship project” that proves the viability of this policy. Rather than a slight against any region, it is viewed as a victory for the Nigerian economy as a whole.
To further counter the narrative of regional bias, the Ministry highlighted that mineral processing is not localized to Lagos. In fact, significant investments are currently being funneled into the northern and central belts of the country, where many of these minerals are physically located. Tomori pointed toward a diverse portfolio of private-sector investments that have been stimulated by recent regulatory reforms. These include:
The Nasarawa Lithium Plant: A massive $600 million processing facility dedicated to lithium, a mineral critical for the global transition to green energy and electric vehicle batteries.
Rare Earth Minerals in Nasarawa: A $400 million plant focused on high-value rare earth elements, which are essential for modern electronics and defense technology.
The ASBA Lithium Plant in Abuja: A $200 million investment in the Federal Capital Territory, further diversifying the processing landscape.
These examples serve to demonstrate that the Ministry’s reforms are bearing fruit across the country. The total value of these projects runs into billions of dollars, creating a robust non-oil revenue base that strengthens the Naira and reduces the nation’s over reliance on volatile crude oil markets.
The Ministry concluded its statement with a plea for constructive dialogue. Tomori urged the Northern Elders Forum and other regional interest groups to look past geographical competition and embrace the broader goal of national self reliance. He noted that the Ministry remains committed to providing an “enabling environment” for any investor, regardless of where they choose to build their factory. The reforms introduced over the past two years have been aimed at removing the bureaucratic bottlenecks that previously stifled the mining sector. By streamlining licensing and offering incentives for local processing, the government believes it has set the stage for a mining boom that will benefit all 36 states.
“The Ministry of Solid Minerals Development will continue to encourage mining companies to establish processing and manufacturing plants across the length and breadth of Nigeria,” Tomori concluded. “We urge the NEF to join hands with the Federal Government in building a stronger, self-reliant economy that serves the collective interest of every Nigerian citizen.”
The tension between the NEF and the Ministry highlights the sensitive nature of industrial development in a federal system. However, the Ministry’s detailed response clarifies that the “Lagos Gold Refinery” is a symbol of private sector confidence in Nigerian policy, rather than a centralized government project As the country moves toward 2026 and beyond, the success of these refineries whether in Lagos, Nasarawa, or Abuja will be the true litmus test for Nigeria’s journey toward becoming a global mining powerhouse.