“It’s Private, Not Federal”: FG Debunks NEF’s Claim on Lagos Gold Refinery

ABUJA — The Federal Government has categorically dismissed allegations by the Northern Elders Forum (NEF) that it violated the federal character principle by “siting” a gold refinery in Lagos State.

In a strongly worded statement issued on Sunday, the Ministry of Solid Minerals Development clarified that the refinery in question is a 100% private sector initiative and not a government-owned project.

Segun Tomori, the Special Assistant on Media to the Minister of Solid Minerals Development, Dr. Dele Alake, described the NEF’s claims as “entirely false” and a product of “embarrassing ignorance.”

Setting the Record Straight

The controversy began after the NEF, through its spokesperson Prof. Abubakar Jika Jiddere, accused the Tinubu administration of bias for allegedly establishing a gold refinery in Lagos while neglecting other regions.

Pushing back against this narrative, Tomori emphasized that the government has no power to dictate where private investors locate their businesses.

“There is no iota of truth in the allegation,” Tomori stated. “The new gold refinery is the initiative of Kian Smith, a 100 percent privately owned mining company. At no point did the Minister announce that the Federal Government owned or established this refinery.”

Private Investment, Not Government Allocation

The Ministry explained that the Kian Smith refinery is a fruit of the Federal Government’s policy on “value addition,” which encourages mining companies to process raw minerals locally rather than exporting them.

“How could the NEF expect the Federal Government to force a private company to locate its operations in a particular area?” the statement queried. “Each company has its operational and marketing strategy to ensure profitability.”

Tomori added that the government is simply creating an enabling environment, which has also led to similar massive investments in the North, including:

• A $600 million lithium processing plant in Nasarawa State.
• A $400 million rare earth plant in Nasarawa State.
• A $200 million ASBA lithium plant in Abuja.

A Call for Due Diligence

The Federal Government slammed the Northern Elders Forum for failing to conduct basic research before issuing a divisive statement.

“It is unfortunate that a body claiming to represent the North—a region boasting accomplished academics and professionals—would display such a lack of due diligence,” Tomori remarked.

The Ministry urged the forum to “turn a new leaf” and support the administration’s efforts to diversify the economy through the mining sector, rather than peddling falsehoods.