The Federal Ministry of Solid Minerals Development has dismissed allegations that the Federal Government breached the federal character principle through the location of a gold refinery in Lagos, describing the claims as misleading and inaccurate.
In a statement released in Abuja yesterday, the ministry clarified that recent remarks attributed to the Minister of Solid Minerals Development, Dr Dele Alake, were wrongly interpreted by the Northern Elders Forum (NEF).
According to the ministry, the controversy stemmed from comments linked to the planned inauguration of a gold refinery and broader reforms within Nigeria’s solid minerals sector, not from any government-owned industrial project.
“The Federal Government did not establish, own, or site a gold refinery in Lagos or in any other part of the country,” the statement said, stressing that the claims falsely projected a private investment as a government initiative.
Furthermore, the ministry explained that the refinery referenced is a privately developed project by Kian Smith, an indigenous mining company operating independently of the Federal Government.
It noted that decisions on where private companies locate their facilities are driven by business strategy, logistics, and commercial viability, not by government directives.
“The role of government is to regulate and enable, not to dictate business locations,” the ministry stated, adding that Nigeria’s investment climate allows investors to make location choices based on operational needs.
Meanwhile, the ministry urged Nigerians to clearly differentiate between public-sector projects and private investments to avoid unnecessary regional or political tensions.
It also commended the leadership of Kian Smith, particularly its founder and Managing Director, Ms Nere Emiko, for what it described as resilience and long-term commitment to building local capacity in gold processing.
According to the ministry, the refinery aligns with the Federal Government’s value-addition policy, which prioritises local processing over the export of raw minerals, thereby strengthening manufacturing, creating jobs, and deepening the mining value chain.
Ultimately, the ministry reaffirmed its commitment to fostering inclusive solid minerals development nationwide, insisting that reforms in the sector are designed to benefit all regions of the country, regardless of project ownership or location.