The commissioning of a privately owned gold refinery in Lagos is being cited by the Ministry of Solid Minerals Development as evidence of growing investor confidence in Nigeria’s mining sector, following recent policy reforms aimed at promoting local mineral processing.
The refinery, developed by mining firm Kian Smith, is one of several privately financed processing facilities emerging across the country under the Federal Government’s value addition policy, which discourages the export of raw minerals.
According to the ministry, the policy shift has begun to attract large-scale investments into mineral processing and manufacturing, marking a departure from Nigeria’s long-standing reliance on raw mineral exports.
“The Lagos gold refinery is a private investment responding to government policy, not a federal project,” said Segun Tomori, Special Assistant on Media to the Minister of Solid Minerals Development.
He said the Federal Government’s role has been limited to creating an enabling regulatory environment for private investors, while allowing companies to determine the location of their facilities based on commercial considerations.
The ministry said similar investments are already underway in other parts of the country, including a $600 million lithium processing plant and a $400 million rare earth minerals facility in Nasarawa State, as well as a $200 million lithium project in Abuja.
“These projects indicate a shift towards local value addition, which is critical for job creation, technology transfer and increased foreign exchange earnings,” Tomori said.
The ministry also said the Lagos refinery reflects the broader objective of positioning Nigeria as a regional hub for mineral processing, rather than a supplier of unprocessed raw materials.
While the siting of the refinery has attracted public debate, including criticism from the Northern Elders’ Forum, the ministry said such concerns do not alter the private ownership structure of the project or the commercial basis for its location.
The Federal Government has reiterated its commitment to supporting private investment in the mining sector through policy reforms, infrastructure support and regulatory clarity.
Officials said more privately owned processing and manufacturing facilities are expected to come on stream in the coming years as reforms deepen.
