The Federal Government has announced the commencement of operations at a high-purity gold refining plant in Lagos, marking a significant milestone in Nigeria’s push to transform its solid minerals sector from raw material exports to value-added industrial processing. The development was disclosed in a statement issued on Tuesday by Segun Tomori, media aide to the Minister of Solid Minerals Development, Dele Alake.
According to the statement, the Lagos facility is part of a broader national strategy aimed at repositioning Federal Government of Nigeria as a leading minerals processing hub in Africa. In addition to the newly operational refinery, the government revealed that three more gold refineries are currently at different stages of development across the country. These projects are expected to significantly curb illegal mineral exports, improve traceability, and strengthen investor confidence in Nigeria’s mining value chain.
Value-addition strategy gains traction
Speaking on the significance of the projects, Alake said they underscore the success of the government’s value-addition policy, which prioritises domestic processing of minerals over the export of unrefined ores. He noted that the approach is designed to boost government revenue, create skilled jobs, and enhance Nigeria’s competitiveness in the global mining industry.
“Nigeria’s value-addition policy is yielding results, with a high-purity gold refinery now operational in Lagos,” the minister said. He added that expanding refining capacity would help formalise the sector, improve transparency, and ensure that mineral exports are properly accounted for through verifiable supply chains.
$600m lithium processing plant ready in Nasarawa
Beyond gold, the government also confirmed that a $600 million lithium processing plant in Nasarawa State has been completed and is now awaiting formal commissioning. The facility is expected to play a strategic role in supporting battery manufacturing, particularly for electric vehicles and renewable energy storage systems.
According to Alake, the lithium plant positions Nigeria to tap into the rapidly growing global demand for critical minerals required for the green energy transition. He said the project is also expected to attract additional foreign and local investments, deepen industrial linkages, and stimulate economic activity in host communities.
Strategic talks with Saudi Arabia
The minister made these disclosures during a bilateral meeting with Saudi Arabia’s Minister of Industry and Mineral Resources, Ibrahim Al-Khorayef, held ahead of the Future Minerals Forum in Riyadh, scheduled for January 13 to 15. The meeting focused on strengthening cooperation between Nigeria and Saudi Arabia in minerals development, industrialisation, and technology transfer.
Alake praised Saudi Arabia for using the Future Minerals Forum as a platform to align national mineral strategies with global supply needs across Africa, the Middle East, Asia, and Europe. He said Nigeria is keen to deepen partnerships by leveraging areas of comparative advantage between both countries.
“There are areas where Saudi Arabia excels and others where Nigeria has strengths. We are keen on structuring agreements that enable meaningful, balanced and constructive engagement,” he said.
Priority areas and ESG focus
According to the minister, priority areas for collaboration include capacity building, training of mining professionals, mineral exploration, and technology transfer. He noted Saudi Arabia’s strengths in exploration technologies and geological data management, while highlighting Nigeria’s vast landmass and abundance of critical minerals and rare earth elements.
Alake also emphasised the importance of mineral traceability, environmental, social and governance (ESG) standards, and mine-pit remediation in future partnerships. He said traceability must anchor international cooperation, supported by clear timelines and robust monitoring mechanisms to enhance investor confidence and sustainability.
Market outlook for gold
The renewed focus on domestic refining comes amid a strong global outlook for gold. According to the World Gold Council, gold prices are projected to rise by 15–30% in 2026, following an exceptional performance in 2025. The precious metal recorded more than 50 all-time highs last year and delivered returns exceeding 60%, reinforcing its status as a strategic asset.
With gold refining now underway in Lagos and lithium processing capacity ready in Nasarawa, Nigeria appears poised to play a more prominent role in global mineral supply chains, particularly as demand accelerates for resources critical to industrial growth and the global energy transition.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
