The Nigerian government has denied claims that it plans to establish a gold refinery in Lagos, describing the allegations as false and misleading. The Northern Elders Forum (NEF) had stated that siting a gold refinery in Lagos would violate the federal character principle. However, the Ministry of Solid Minerals Development has refuted this claim, emphasizing that no such government decision has been announced.
According to the Special Assistant on Media to the Minister of Solid Minerals Development, Segun Tomori, the refinery in question is a private investment by Kian Smith, a wholly private mining firm. The ministry has no authority to dictate where a private investor should locate a business. Tomori explained that the Lagos refinery is designed to support the growth of Nigeria’s local gold industry through modern and innovative methods.
The Federal Government does not compel private firms to establish their operations in specific locations, as investors determine their siting based on operational efficiency and market considerations. The ministry commended the founder and Managing Director of Kian Smith, Ms Nere Emiko, for successfully delivering the project after years of determination and enterprise. The refinery aligns with the government’s value-addition policy in the solid minerals sector, which aims to curb the export of raw minerals and encourage local processing and manufacturing.
This policy has already spurred the establishment of several mineral processing plants nationwide, attracting significant foreign investment and creating thousands of jobs for Nigerians. Examples of such projects include the $600 million lithium processing plant in Nasarawa State, a $400 million rare earth minerals plant also in Nasarawa, and the $200 million ASBA lithium plant in Abuja.
The Ministry of Solid Minerals Development has implemented sustained policy reforms over the past two years, creating an enabling environment for private sector participation in the mining industry. Projects like the Lagos gold refinery demonstrate the positive impact of these reforms. The ministry will continue to encourage mining companies to establish processing and manufacturing plants across the country, promoting a stronger and more self-reliant economy.
The denial of the allegations by the Ministry of Solid Minerals Development underscores the importance of accuracy and transparency in public discourse. As the Nigerian government continues to promote economic development and investment in the solid minerals sector, it is essential to separate fact from fiction and focus on the tangible progress being made. With the private sector playing a crucial role in driving growth and job creation, the government’s efforts to create a conducive business environment are likely to yield positive results in the years to come.
