The Ministry of Solid Minerals Development (MSMD) has dismissed claims by the Northern Elders' Forum (NEF) that the federal government sited a gold refinery in Lagos in violation of the principle of federal character, describing the allegation as false and misleading.
In a press release issued yesterday and signed by Segun Tomori, special assistant on media to the Minister of Solid Minerals Development, he said the statement credited to the NEF and signed by its spokesperson, Professor Abubakar Jika Jiddere, was based on "ignorance and mischief," noting that the gold refinery in question is a wholly private-sector initiative.
According to the ministry, the refinery is being developed by Kian Smith, a 100 per cent privately owned mining company, and not by the Federal Government.
The project is intended to support the growth of Nigeria's local gold industry through value addition and innovative mining practices.
Keep up with the latest headlines on WhatsApp | LinkedIn
"There was nowhere in the Minister's announcement that the Federal Government owned or established a gold refinery in Lagos or anywhere else," the Ministry stated, adding that the Minister of Solid Minerals Development, Dr Dele Alake, had clearly explained that multiple gold refineries are being developed across the country by different private investors.
The federal government, the Ministry said, only provided the enabling environment through policy reforms, while congratulating the founder and Managing Director of Kian Smith, Ms Nere Emiko, for successfully delivering the project after years of perseverance and leadership.
The Ministry explained that the Lagos gold refinery aligns with its value-addition policy introduced two years ago, which discourages the export of raw minerals and promotes local processing and manufacturing.
The policy, it noted, has already attracted significant investments nationwide, including a $600 million lithium plant in Nasarawa State, a $400 million rare-earth plant in Nasarawa, and a $200 million ASBA lithium plant in Abuja.
The Ministry expressed disappointment at what it described as a decline in the quality of public discourse by the NEF, questioning how an organisation with a legacy of intellectual leadership could fail to conduct basic due diligence before issuing such claims.
It further queried how the NEF expected the Federal Government to compel a private company to locate its operations in a specific part of the country, noting that investment decisions are driven by business, operational and market considerations.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Reaffirming its commitment to reforms in the solid minerals sector, the Ministry said it would continue to encourage private investors to establish processing and manufacturing plants across Nigeria, stressing that the Lagos gold refinery and similar projects are proof of the effectiveness of its policies.
The Ministry called on the NEF to support the economic development agenda of President Bola Ahmed Tinubu and to contribute constructively to efforts to build a stronger, more self-reliant Nigerian economy.
