Why Must Everything Be in Lagos? Or Why Is Lagos Always the Battlefield?
Few questions inflame Nigeria’s political space as quickly as this one: “Why must everything be in Lagos?”
It is a question rooted in frustration, history, perception, and deep-seated distrust across Nigeria’s regional fault lines. But in the ongoing controversy surrounding the proposed gold refinery located in Lagos State, that familiar question risks oversimplifying a far more complex national debate — one that touches on federal character, private enterprise, regional development, industrial logic, and national unity.
At the heart of the issue is not merely geography. It is about how Nigerians understand equity, how politics distorts economics, and how selective narratives continue to undermine nation-building.
The Spark: Northern Elders Forum and the Gold Refinery Debate
The controversy erupted following public remarks by officials of the Federal Ministry of Solid Minerals Development, particularly comments associated with the commencement of operations at a gold refining facility in Lagos.
The Northern Elders Forum (NEF) responded forcefully, accusing the Federal Government of violating the federal character principle by allegedly situating what it described as a “National Gold Refinery” in Lagos — far away from Nigeria’s primary gold-producing regions in the North.
In an open letter dated January 18, 2026, the NEF framed the refinery’s location as yet another example of structural inequality, arguing that regions that produce resources are repeatedly denied the benefits of value addition, employment, and industrial growth.
The framing was politically potent — but it was also deeply contested.
Federal Government’s Position: This Is Not a National Project
The Federal Government was quick to respond.
Through official statements from the Ministry of Solid Minerals Development, it clarified that the Lagos gold refinery is not a federal project. It is a 100% privately owned facility, developed by Kian Smith Company FZE, a private mining and refining firm operating within Nigeria’s mining value chain.
According to the ministry, at no point did the government announce ownership, funding, or direct control of the refinery. Instead, it emphasized that multiple privately owned gold refineries and mineral processing plants are currently in development across different parts of the country, including the North.
This clarification is crucial — because federal character applies to federal projects and appointments, not to where private investors choose to locate their businesses.
Federal Character: Principle or Political Weapon?
Nigeria’s federal character principle exists to ensure fairness, inclusion, and representation in public institutions and governance. It was designed to prevent domination by any one region in federal appointments, opportunities, and state-owned infrastructure.
However, stretching this principle to cover private-sector investment decisions raises serious legal and economic questions.
If federal character were applied rigidly to private enterprise:
Would banks be forced to relocate branches based on ethnicity?
Would factories require regional approval before choosing locations?
Would investors lose autonomy over logistics, exports, and infrastructure access?
Such an interpretation would cripple investment confidence, discourage capital inflow, and weaken Nigeria’s competitiveness in global markets.
Why Lagos? The Economic Reality Few Want to Admit
Lagos is not merely another state in the federation.
It is:
Nigeria’s commercial and financial capital
Home to the country’s largest ports
The center of banking, insurance, logistics, exports, and capital markets
Nigeria’s most connected city to global supply chains
For a refinery designed to process gold for international markets, efficiency matters. Infrastructure matters. Access to ports matters. Regulatory coordination matters.
Globally, refineries are often located near markets and export hubs, not necessarily at mining sites. Gold mined in Africa is refined in Switzerland. Oil drilled offshore is refined thousands of kilometers away. This is standard industrial practice, not marginalization.
The Kaduna Refinery Question: A Forgotten Precedent
Critics of the NEF’s argument point to an uncomfortable historical truth.
Nigeria’s Kaduna Refinery was built far from the Niger Delta, where crude oil is produced. Southern Nigeria did not declare marginalization. The project was accepted in the spirit of national unity and balanced development.
No constitutional crisis followed. No accusations of injustice dominated national discourse.
Yet today, a privately owned gold refinery in Lagos is framed as an existential threat to equity.
This double standard fuels mistrust — particularly in the South — and deepens the perception that equity is demanded selectively, not consistently.
Resource Location vs Industrial Logic
The argument that “gold is in the North, therefore refineries must be in the North” sounds intuitive — but it ignores how modern industrial systems work.
Mining and processing are distinct economic activities.
While proximity to raw materials reduces transport costs, other factors often outweigh that benefit:
Stable power supply
Skilled labor
Financial services
Export infrastructure
Security and insurance access
Global buyer proximity
The smarter national conversation is not where one refinery is located, but how many refineries exist across all regions.
What Nigeria Actually Needs: Distributed Industrial Growth
Nigeria does not suffer from Lagos being too developed.
Nigeria suffers from other regions being underdeveloped.
The solution is not tearing down Lagos or politicizing private investment. The solution is:
Building mineral processing hubs in Zamfara, Niger, Kebbi, and Kaduna
Creating industrial parks around solid minerals
Improving power, roads, and security to attract investors
Offering incentives that make non-Lagos locations competitive
National development cannot be achieved by resentment-driven policy. It must be driven by strategic planning and regional competitiveness.
Beyond the Noise: What This Debate Really Reveals
The gold refinery controversy exposes deeper national challenges:
A trust deficit between regions
Persistent misunderstanding of economic fundamentals
Politicization of private enterprise
Weak communication from government institutions
Unresolved grievances about historical development imbalance
These issues cannot be solved by blaming Lagos — or by framing every economic decision as ethnic warfare.
National Unity Cannot Survive Selective Equity
Lagos does not own Nigeria.
But Lagos remains Nigeria’s economic engine.
Dismantling that reality does not empower other regions — it weakens the entire federation.
True federal balance means:
Encouraging multiple Lagos-like hubs, not punishing the existing one
Supporting value addition everywhere, not fighting where it starts
Applying equity consistently, not when convenient
Conclusion: Choose Nation-Building Over Narrative Warfare
The Lagos gold refinery debate should be an opportunity — not a crisis.
An opportunity to:
Clarify the role of government vs private enterprise
Recommit to nationwide industrialization
Address regional inequality with policy, not rhetoric
Strengthen unity through fairness, not suspicion
Nigeria’s future depends on economic expansion across all regions, not endless disputes over who gets what first.
The real enemy is not Lagos.
The real enemy is underdevelopment, distrust, and political opportunism.
And until Nigeria confronts those honestly, controversies like this will keep repeating — gold refinery or not.
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