THE Federal Government and the Northern Elders Forum (NEF) are locked in a sharp public dispute over the location of a newly commissioned gold refinery in Lagos, following allegations by the forum that the facility violates Nigeria’s federal character principle and deepens structural inequality against the North.
News Point Nigeria reports that the controversy erupted after the NEF, in an open letter dated January 18, 2026, accused the Federal Government of siting what it described as a “National Gold Refinery” in Lagos despite the concentration of Nigeria’s commercially viable gold deposits in Northern states.
The letter, signed by NEF spokesperson, Professor Abubakar Jika Jiddere, and addressed to President Bola Ahmed Tinubu and members of the Federal Executive Council, argued that the decision undermines constitutional provisions on equity, derivation, and inclusive economic development.
According to the forum, locating gold refining infrastructure far from mining communities strips Northern Nigeria of industrial jobs, technology transfer, and economic benefits, while reinforcing what it described as “structural concentration of wealth” in Lagos and its environs.
The NEF cited Sections 14(3), 16(1)(b), and 162(2) of the 1999 Constitution, insisting that federal character and derivation principles should apply not only to political appointments but also to the siting of strategic economic infrastructure.
“Nigeria’s decision to refine gold far from its source is economically regressive and reminiscent of colonial extractive models,” the forum stated, warning that continued exclusion of the North from value addition would deepen poverty, youth unemployment, insecurity, and regional resentment.
The forum demanded that at least one primary gold refinery be located within Northern Nigeria’s gold-producing corridor, naming states such as Zamfara, Kebbi, Niger, Kaduna, and Katsina, while suggesting Lagos be limited to trading, certification, or export functions.
However, the Ministry of Solid Minerals Development swiftly rejected the NEF’s claims, describing them as “a parade of ignorance in the service of mischief.”
In a press response signed by the Minister’s Special Assistant on Media, Segun Tomori, the ministry clarified that the Lagos gold refinery is not owned, funded, or established by the Federal Government, but is instead a 100 per cent privately owned initiative by Kian Smith, a Nigerian mining company.
“There is no iota of truth in the allegation that the Federal Government sited a national gold refinery in Lagos,” the statement said, stressing that the government has no legal or constitutional power to compel a private investor to locate its business in a particular region.
The ministry explained that the announcement made by the Minister of Solid Minerals Development, Dr. Dele Alake, during a meeting with Saudi Arabia’s Minister of Industry and Mineral Resources ahead of the Future Minerals Forum in Riyadh, merely highlighted the commencement of operations at a privately owned refinery in Lagos.
It added that Dr. Alake had also disclosed that three additional gold refineries were in development across the country, all privately owned, alongside other major mining investments, including a $600 million lithium processing plant and a $400 million rare earth plant in Nasarawa State, as well as a $200 million lithium plant in Abuja.
According to the ministry, the Lagos refinery reflects the success of the Federal 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 massive inflows of foreign capital and the creation of thousands of jobs across Nigeria,” the statement said.
The ministry further accused the NEF of failing to conduct basic due diligence before issuing what it described as “embarrassing and inflammatory” statements, warning that such rhetoric could fuel mistrust and irresponsible agitation.
“How could the NEF expect the Federal Government to force a private company to locate its operations in a particular area of the federation?” the ministry queried, insisting that investors must be allowed to determine locations based on operational and market considerations.
While congratulating the founder and Managing Director of Kian Smith, Ms. Nere Emiko, for delivering the refinery after years of perseverance, the ministry reaffirmed its commitment to creating an enabling environment for private sector investment in mining across all regions.
Despite the Federal Government’s clarification, the NEF maintained that the issue goes beyond ownership and touches on broader questions of economic justice, federal balance, and national cohesion, warning that persistent spatial inequality could have long-term political and security consequences.
The forum cautioned that “a region denied value addition will not remain calm forever,” describing the refinery decision as a defining test of leadership and constitutional fairness.