The Northern Elders Forum (NEF) has criticised the decision to locate a gold refinery in Lagos State, describing the move as a departure from equitable federal resource distribution and a source of discord, according to the forum’s statement signed by Professor Abubakar Jika Jiddere.
NEF’s reaction comes amid clarifications from the Federal Ministry of Solid Minerals Development, which said the facility is a private investment.
In a release issued recently, the forum argued that siting the refinery thousands of kilometres from major gold-producing regions in Northern Nigeria undermines principles of equity, balanced development and inclusive federal cooperation, with implications for local industrialisation and employment.
NEF said the decision could deepen structural inequalities by concentrating value-addition activities away from resource-rich areas.
“The decision to locate Nigeria’s gold refinery in Lagos while gold is mined from Northern soil is not an oversight,” the forum said, asserting that the move has long-term social and economic consequences for communities in Zamfara, Kebbi, Niger, Kaduna and Katsina states.
It grounded its objection in constitutional provisions relating to federal character and equality of opportunity.
NEF also urged political and traditional leaders from Northern Nigeria to speak out against what it termed a reinforcement of an “extractive economic model”, where raw materials are sourced from one region but processed elsewhere, depriving source communities of industrial benefits and skilled jobs.
Reacting to the criticism, the Federal Ministry of Solid Minerals Development clarified that the Lagos gold refinery is the result of private investment by Kian Smith, a wholly privately owned mining company, and not a federal government-owned or funded project.
The ministry said government policy encourages value addition and local processing within the solid minerals sector.
In a statement attributed to Segun Tomori, special assistant on media to the Minister, the ministry said the refinery was developed to support growth in the local gold industry and that the federal government does not determine where private companies locate their operations. It noted that similar private processing facilities are being developed across the country.
Tomori emphasised that the refinery reflects implementation of the government’s value-addition policy, which is aimed at discouraging raw mineral exports and stimulating local processing and manufacturing, attracting foreign capital and creating jobs.
The dispute over the refinery’s location highlights ongoing debates over how resource infrastructure projects should be distributed across Nigeria’s federating units, raising questions about federal character, investment incentives and regional economic participation.
