Recent claims suggesting that the Federal Government violated the federal character principle by siting a gold refinery in Lagos have sparked confusion.
The Federal Ministry of Solid Minerals Development has stepped in to set the record straight, emphasizing that the allegations are based on a misinterpretation of earlier statements by the Minister, Dr. Dele Alake.
Government Does Not Own Gold Refineries
In a statement released on Sunday in Abuja by Mr. Segun Tomori, Special Assistant on Media to the Minister, the ministry clarified that the Federal Government neither owns nor established any gold refinery in Lagos or elsewhere in Nigeria.
“There was nowhere in the Minister of Solid Minerals announcement that the Federal Government owned or established a gold refinery in Lagos or anywhere for that matter,” Tomori explained.
He stressed that while the minister did mention ongoing plans for gold refineries, these are privately owned ventures being developed across the country.
Private Initiative Driving Gold Refinery Project
The refinery that triggered the controversy is a private project led by Kian Smith, a fully privately owned mining company.
Tomori noted that the company’s founder and Managing Director, Ms. Nere Emiko, has invested years of effort, leadership, and perseverance to bring this flagship project to life.
The ministry emphasized that decisions about the location of private businesses are made by the companies themselves based on operational and commercial considerations, and the government does not dictate such choices.
Promoting Local Processing and Value Addition
According to the ministry, this refinery is a prime example of the solid minerals sector embracing the value-addition policy, which seeks to discourage the export of raw minerals and boost local processing and manufacturing.
The government’s role is to provide a supportive environment for private investment and the broader development of solid minerals across Nigeria.
“While the Federal Government supports the growth of the sector, it is crucial for the public to distinguish between government projects and private sector initiatives,” Tomori added.
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