By BONIFACE AKARAH

The Federal Ministry of Solid Minerals Development has dismissed claims by the Northern Elders’ Forum (NEF) that the Federal Government sited a gold refinery in Lagos in violation of the federal character principle, describing the allegation as false and misleading.

In a statement issued Sunday evening, January 18, 2026, and signed by the Special Assistant on Media to the Minister of Solid Minerals Development, Segun Tomori, the Ministry said the refinery referenced by NEF is a wholly private initiative and not a Federal Government project.

“There is no iota of truth in the allegation. The gold refinery is the initiative of Kian Smith, a 100 per cent privately owned mining company,” the statement said, adding that “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 said the Minister of Solid Minerals Development, Dr. Dele Alake, had been clear that the proposed refinery is one of several privately owned facilities being developed across the country as part of broader sectoral reforms.

“Dr. Alake was very clear, concise and emphatic that other gold refineries are in the works across the country, all of them privately owned by different companies,” the statement noted.

The Ministry explained that the Lagos refinery aligns with the government’s value-addition policy introduced two years ago, which discourages the export of raw minerals and promotes local processing and manufacturing.

“This policy has stimulated the establishment of processing plants nationwide, attracting significant foreign investment and creating thousands of jobs,” it said, citing projects such as a $600 million lithium plant in Nasarawa State, a $400 million rare-earth plant also in Nasarawa, and a $200 million lithium plant in Abuja.

The Ministry also congratulated the founder and Managing Director of Kian Smith, Nere Emiko, for delivering what it described as a landmark private-sector investment in the solid minerals sector.

“How could anyone expect the Federal Government to compel a private company to locate its operations in a particular part of the federation?” the statement queried, adding that location decisions are guided by business strategy and market considerations.

The Ministry urged NEF to verify facts before making public claims and called on the forum to support ongoing efforts to strengthen Nigeria’s economy through private-sector-led growth in the solid minerals sector.

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