Nigeria Gold Refinery Triggers Regional Row Over Project Location

January 21, 2026

A dispute has emerged over the location of a gold refinery in Lagos, after a northern pressure group accused the federal government of favouring the south in the siting of strategic mineral infrastructure.

The Northern Elders Forum (NEF) said the refinery’s location breached the country’s federal character principle, arguing that northern states, where most of Nigeria’s gold is mined, were being sidelined.

“We believe the siting of the refinery in Lagos is unfair to the North and goes against the federal character principle,” NEF spokesperson Professor Abubakar Jika Jiddere said.

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The Ministry of Solid Minerals Development has rejected the claim, insisting the refinery is a private initiative and not a government project.
“There is no iota of truth in the allegation,” said Segun Tomori, the ministry’s media aide.

“The new gold refinery is the initiative of Kian Smith, a 100 percent privately owned mining company, aimed at developing the local gold industry through innovative practices.”

The ministry added that several other privately owned refineries are being developed across Nigeria and commended the refinery’s founder for her perseverance.

“How could the federal government compel a private company to locate its operations in a particular area?” the statement asked, accusing NEF of failing to verify facts before issuing its statement.

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The dispute highlights ongoing sensitivities over regional access to industrial projects in Nigeria, even as the government promotes a value-addition policy aimed at encouraging local mineral processing rather than exporting raw materials.

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Prosper Okoye is a Correspondent and Research Writer at Prime Business Africa, a Nigerian journalist with experience in development reporting, public affairs, and policy-focused storytelling across Africa

Prosper Okoye

Prosper Okoye is a Correspondent and Research Writer at Prime Business Africa, a Nigerian journalist with experience in development reporting, public affairs, and policy-focused storytelling across Africa

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