The Federal Government has firmly rejected allegations by the Northern Elders Forum (NEF) that it violated the federal character principle by siting a gold refinery in Lagos, insisting that the facility in question is not a government project but a private initiative by an independent company. The clarification was issued in response to a statement by the NEF that suggested the federal government had established the refinery in violation of national equity principles.
In a statement released on Sunday in Abuja, the Federal Ministry of Solid Minerals Development said NEF’s claim was based on a “misrepresentation” of remarks attributed to the country’s Solid Minerals Minister, Dr. Dele Alake. According to the ministry, the minister never announced that the government owns or established a gold refinery in Lagos or anywhere else in Nigeria. The statement was made by Segun Tomori, Special Assistant on Media to the minister, who described the NEF’s position as “false and misleading.”
Tomori stressed that the refinery referenced by the NEF is a 100 per cent privately owned project developed by Kian Smith, a private mining firm, and that the government does not determine where private companies locate their operations. “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,” Tomori said, noting that the minister had been clear about the nature of private sector involvement in the project.
The ministry pointed out that under current policy reforms in the solid minerals sector, the government’s role is to create an enabling environment for private investment rather than to directly intervene in business decisions. It emphasised that private companies independently decide on their business locations based on commercial and operational considerations — a position that, according to the ministry, NEF’s statement failed to recognise.
The Lagos gold refinery is part of a broader response by the solid minerals sector to the value‑addition policy, which aims to reduce the export of raw minerals and promote local processing and manufacturing. The refinery was highlighted by the ministry as one of several private sector projects springing up across Nigeria that leverage the policy’s incentives, which also include investments in lithium and rare earth processing plants in Nasarawa State and an ASBA lithium facility in Abuja.
The federal government said it applauds the resilience and leadership of the refinery’s founder and Managing Director, Ms. Nere Emiko, for delivering what officials described as a “flagship project” after years of effort and enterprise. The refinery’s establishment, they added, reflects increasing confidence among investors in Nigeria’s mining sector and aligns with broader efforts to extract greater economic value from the country’s natural resources.
The ministry’s rebuttal also took aim at NEF’s understanding of the issue, with officials expressing surprise at what they termed a lack of basic due diligence before issuing the original claim. “How could the NEF expect the Federal Government to force a private company to locate its operations in a particular part of the federation when each company has its operational and marketing strategy?” the statement queried, suggesting that the allegation lacks logical grounding.
The controversy centres on the principle of federal character, a constitutional mechanism designed to promote fair representation of different regions in public appointments and resource allocation. NEF’s claim implied that the government was favouring one region by placing a major project there, but the ministry’s response clarifies that such an interpretation does not hold when a project is privately owned.
The federal government reiterated its commitment to encouraging private sector participation in the solid minerals industry and urged NEF and other stakeholders to support initiatives that promote economic growth and job creation rather than spread misinformation. Officials said this support is crucial for the success of President Bola Ahmed Tinubu’s broader economic reforms, which aim to build a more self‑reliant Nigerian economy through value addition and industrialisation.
As the debate continues, the ministry’s clarification seeks to draw a clear line between what constitutes government‑led projects and private investments, arguing that conflating the two can breed misunderstanding and unnecessary tension in national discourse.
The federal government’s firm denial of NEF’s claim sheds light on how private sector contributions to Nigeria’s industrial landscape are being interpreted in the broader political context — and underscores the ongoing role of policy reforms in shaping the country’s mineral‑processing future.
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