FG Unveils Operational Gold Refinery in Lagos and Nasarawa Lithium Facility
Nigeria Commences Operations at High-Purity Gold Refinery in Lagos as $600 Million Lithium Plant
The Federal Government of Nigeria has officially commenced operations at a high-purity gold refining plant in Lagos, marking a significant transition from raw mineral exports to high-value processing. This development was disclosed by the Minister of Solid Minerals Development, Dr Dele Alake, during a bilateral meeting with Saudi Arabia’s Minister of Industry and Mineral Resources, Ibrahim Al-Khorayef, ahead of the Future Minerals Forum (FMF) in Riyadh. The operational plant is the first of four planned refineries intended to institutionalise mineral traceability and curb illegal exports across the country.
Scaling Gold Refining and Traceability
The Lagos refinery is a cornerstone of the administration’s "Value-Addition" policy, which mandates the processing of minerals within Nigeria to retain economic value. Dr Alake confirmed that three additional gold refineries are currently at various stages of development. These facilities are designed to:
Enhance Transparency: Providing a verifiable audit trail for Nigerian gold in the global market.
Curb Illicit Trade: Reducing the volume of unrefined gold smuggled across borders.
Strengthen Investor Confidence: Aligning Nigeria’s mining sector with Environmental, Social, and Governance (ESG) standards.
$600 Million Nasarawa Lithium Facility Ready for Launch
In addition to the gold sector milestones, the Minister revealed that a $600 million lithium processing plant in Nasarawa State has reached 100% completion. The facility is currently awaiting formal inauguration. As a critical component of the global green energy transition, the plant is positioned to support the battery production value chain for electric vehicles (EVs) and renewable energy storage systems.
Dr Alake noted that the Nasarawa facility represents a strategic shift toward positioning Nigeria as a key player in the global supply of "transition minerals," which are increasingly vital for advanced manufacturing and carbon-neutral technologies.
Strengthening Nigeria–Saudi Arabia Mineral Collaboration
The bilateral discussions in Riyadh focused on aligning national strategies between the two nations. Nigeria seeks to leverage Saudi Arabia’s expertise in geological data management and exploration technologies, while offering its vast landmass and abundant critical mineral deposits as a destination for Saudi capital.
The Minister identified several priority areas for the joint working group established at FMF 2025, including:
Technology Transfer: Incorporating modern exploration techniques into Nigerian mining operations.
Professional Training: Capacity building for Nigerian mining engineers and geologists.
Mine-Pit Remediation: Establishing robust environmental standards for post-mining site restoration.
Global Market Context
The timing of these launches is strategically significant. According to the World Gold Council, gold is projected to sustain its upward trajectory with a forecast increase of 15% to 30% in 2026. This follows a record-breaking performance in 2025, where the metal hit over 50 all-time highs and delivered returns exceeding 60%. By increasing domestic refining capacity, Nigeria aims to capture a larger share of this global appreciation.
Conclusion
The operationalization of the Lagos gold refinery and the completion of the Nasarawa lithium plant signal the successful execution of Nigeria’s midstream mineral strategy. By moving away from the export of raw ore, the Federal Government is creating a more resilient economic framework capable of generating higher revenue and high-skilled employment. As the 2026 fiscal year unfolds, the focus will remain on the formal commissioning of the remaining refineries and the deepening of bilateral agreements with strategic partners like Saudi Arabia.
