Nigeria is once again at a familiar crossroads where policy choices expose deeper structural contradictions within the federation. The ongoing controversy surrounding the siting of the proposed National Gold Refinery in Lagos State is not merely an administrative disagreement; it is a constitutional, economic, and moral question that strikes at the very heart of equity, federal balance, and inclusive development.
The Northern Elders Forum (NEF) has rightly raised fundamental concerns about the decision to locate a gold refinery thousands of kilometres away from the primary gold-producing regions of the country. The Coalition of Funtua Community-Based Organisations strongly aligns with this position not out of sentiment or regional emotion, but out of reason, law, and national interest.
Gold deposits in Nigeria are overwhelmingly located in Northern states such as Zamfara, Kebbi, Kaduna, Katsina, Niger, and parts of the North Central zone. The economic logic of resource processing is straightforward and globally accepted: value addition should occur as close as possible to the source of extraction. Anything short of this is inefficient, economically regressive, and socially destabilising.
The sheer distance between Northern mining communities and Lagos imposes avoidable costs-logistical, security-related, and environmental. Transporting raw gold over such long distances increases exposure to theft, smuggling, and illicit trade, while denying host communities the industrial ecosystems that accompany refining activities: skilled jobs, infrastructure, ancillary services, and technological transfer.
Nigeria’s Constitution is not silent on this matter. Section 14(3) of the 1999 Constitution (as amended) enshrines the principle of federal character, mandating that government actions must reflect fairness, inclusiveness, and balanced development. Likewise, Section 16 obliges the state to manage the national economy in a manner that secures maximum welfare and equitable distribution of resources.
To consistently extract resources from one region while concentrating value addition, industrial infrastructure, and economic power in another is not federalism-it is structural imbalance. It deepens regional inequality and reinforces the perception, whether intended or not, that certain parts of the country exist merely as extraction zones rather than development partners.
The Federal Government’s assertion that the refinery is a private sector-driven initiative does not resolve the core issue. Government policy determines incentives, approvals, and strategic direction. No serious government abdicates responsibility for the spatial consequences of strategic national infrastructure simply by invoking private ownership.
Around the world, governments actively guide private investments to align with national development objectives. To pretend otherwise is policy evasion. If Nigeria can insist on local content in oil and gas, it can certainly insist on proximity and regional balance in solid minerals processing.
Northern Nigeria is already grappling with the consequences of unregulated mining—banditry, environmental degradation, youth unemployment, and community displacement. Establishing refineries closer to mining areas would formalise the sector, weaken criminal networks, and create lawful economic alternatives for thousands of young people.
Ignoring this opportunity is not just an economic mistake; it is a security risk. A federation that extracts without developing will inevitably face resistance, resentment, and instability.
Let it be stated clearly: this is not an argument against Lagos, nor a denial of its economic importance. Lagos is already Nigeria’s commercial capital, hosting a disproportionate share of financial, industrial, and logistical assets. The question is not whether Lagos deserves development—it clearly does—but whether every new national asset must default there, irrespective of logic or equity.
A truly united Nigeria is one where each region is allowed to play to its strengths and benefit meaningfully from its resources. We therefore urge the Federal Government to pause, reflect, and realign. The siting of a national gold refinery should be guided by proximity to raw materials, constitutional equity, economic efficiency, and national cohesion, not convenience or historical centralisation.
History is unforgiving to governments that ignore legitimate grievances grounded in law and reason. The record is being written. Silence, indifference, or deflection will not be misunderstood—it will be remembered. Nigeria can do better. And on this issue, it must.
Prof Muhammad Ghazali Garba Secretary General and Rabi’u Ahmad Dankoli Sarkin Noman Funtua Chairman
