The decision to cite a gold refinery in Lagos State has renewed concerns over regional development imbalance, with the Northern Elders Forum (NEF) warning that the move could deepen economic inequality between Nigeria’s resource-producing regions and industrial centres.

The forum, in a statement issued on Thursday, said locating the refinery far from the gold-producing states in Northern Nigeria undermines inclusive development and denies host communities the economic benefits associated with mineral value addition.

According to NEF, most of Nigeria’s commercially viable gold deposits are found in states such as Zamfara, Kebbi, Kaduna and Niger, yet these areas continue to suffer from poor infrastructure, unemployment and insecurity, partly due to limited industrial presence.

“The continued extraction of resources from the North without corresponding investment in processing and manufacturing facilities perpetuates underdevelopment and economic exclusion,” the forum stated.

Impact on Local Economies

The NEF argued that siting the refinery closer to mining locations would have stimulated local economies, created direct and indirect jobs, and encouraged the development of supporting infrastructure such as roads, power supply and security architecture.

Analysts note that value-addition industries located near resource sites often lead to:

• Increased internally generated revenue (IGR) for host states

• Growth of small and medium-scale enterprises

• Reduction in illegal mining through formal employment

• Improved community stability and security

The forum warned that failing to integrate mining regions into the industrial value chain could worsen youth unemployment, a key driver of insecurity in parts of the North.

FG’s Position and Regional Debate

The Federal Government has maintained that the Lagos-based gold refinery is a private investment, not a government-owned project, and that investors are free to choose locations based on commercial considerations.

However, the NEF insisted that government policies and incentives significantly influence investment decisions and should be structured to promote balanced regional development.

The forum urged the Federal Government to adopt a deliberate decentralisation strategy for mineral processing facilities, ensuring that mining-producing regions benefit from industrialisation alongside extraction.

Call for Inclusive Development

Observers say the controversy highlights a broader national debate on resource governance and equitable development, especially as Nigeria seeks to diversify its economy away from oil.

The NEF called on policymakers to align solid minerals development with constitutional principles of equity, fairness and federal character, stressing that sustainable national growth depends on ensuring that all regions participate meaningfully in economic value chains.