The Federal Government has denied owning or siting a gold refinery in Lagos, clarifying that the project is a private investment aligned with Nigeria’s solid minerals policy
FG Sets the Record Straight on Lagos Gold Refinery, Distances Itself from Ownership Claims
The Federal Government has firmly dismissed claims that it owns or sited a gold refinery in Lagos, describing the assertions as false, misleading, and based on a misreading of facts surrounding the project.
The clarification followed a wave of public criticism triggered by reports on the proposed commissioning of a gold refinery in Lagos, which some commentators erroneously attributed to the Federal Government and framed as a violation of the federal character principle.
In a statement issued by the Ministry of Solid Minerals Development, the government stressed that the Lagos gold refinery is entirely a private-sector initiative, promoted by Kian Smith, a 100 per cent privately owned Nigerian mining company.
“At no point did the Federal Government announce the establishment, ownership, or siting of a gold refinery in Lagos or in any other part of the country,” the ministry stated.
Rather, officials explained, what was communicated to the public was the emergence of a private investment aligned with government policy aimed at deepening value addition in Nigeria’s solid minerals sector.
The Minister of Solid Minerals Development, Dr. Dele Alake, had earlier made it clear that the Lagos refinery is one of several privately owned refineries expected to come on stream nationwide. According to him, similar facilities are already being developed in other regions of the country by different investors.
“These projects are driven by commercial logic, market access and business strategy, not by government directives on where companies should locate their investments,” the ministry explained.
It further emphasised that it is neither the role nor the practice of the Federal Government to compel private investors to site their businesses in specific locations. Decisions on location, it noted, are determined by infrastructure availability, logistics, proximity to markets and overall profitability.
Government’s responsibility, the ministry said, is limited to creating an enabling environment through policy clarity, regulation and incentives that allow private capital to thrive.
The Lagos gold refinery, officials explained, is a direct outcome of the value-addition policy introduced by the ministry, which discourages the export of raw minerals and prioritises local processing and manufacturing.
Since the policy was rolled out, Nigeria has recorded a surge in large-scale investments in mineral processing, marking a shift from the long-standing reliance on exporting unprocessed minerals.
Among the major projects linked to this policy push are a $600 million lithium processing plant in Nasarawa State, a $400 million rare earth elements facility, also in Nasarawa, and a $200 million ASBA lithium plant in Abuja.
Collectively, these investments are expected to attract significant foreign capital inflows, generate thousands of direct and indirect jobs, and strengthen Nigeria’s industrial base in critical minerals.
On the Lagos refinery specifically, the Federal Government publicly congratulated Nere Emiko, founder and managing director of Kian Smith, praising what it described as years of perseverance, enterprise and leadership in bringing the project to fruition.
Beyond correcting the ownership narrative, the ministry expressed concern over what it called a lack of basic due diligence by critics who assumed government involvement without verifying facts.
It warned that such misrepresentation could stoke unnecessary regional tension and undermine informed national discourse on economic development.
As Nigeria continues its push to diversify the economy and reduce dependence on oil revenues, the government reiterated that private-sector-led industrialisation in mining and minerals processing remains central to its strategy.
The Alake-led ministry reaffirmed its commitment to encouraging more investors to establish processing and manufacturing plants across the federation, stressing that investment flows, not political sentiment, will ultimately determine the distribution of such projects.
“The Lagos gold refinery should be understood for what it truly is,” the ministry said, “a privately financed business venture operating within a government-backed policy framework designed to build a stronger, more self-reliant Nigerian economy.” Read More
