The proximity of an industry to its raw materials is widely regarded as a major determinant in industrial location decisions. Such proximity reduces production costs by eliminating excessive transportation expenses and significantly shortens the timeline involved in moving raw materials.
Historically, this principle guided industrial development in Nigeria. Textile industries were sited in Kaduna because of their closeness to cotton-producing areas, just as beverage companies were established in Lagos due to the availability of cocoa in the western region of the country.
Private-sector investors are inherently cost-conscious and profit-oriented. Consequently, decisions on industrial location are largely influenced by proximity to raw materials, access to markets, and the overall cost structure of operations.
Heavy earth minerals such as gold and lithium require environments that suit their geological and storage characteristics. The high humidity and temperature fluctuations in Lagos may not be conducive to the storage of such raw materials. Furthermore, these minerals are predominantly found in Nigeria’s hinterland, making proximity to the sea largely irrelevant in this context.
Transporting raw gold from its source to Lagos would require extensive road logistics. This presents a major challenge, given the deplorable condition of many Nigerian roads and the absence of an efficient and reliable logistics infrastructure.
The Minister of Solid Minerals appears to have acted with undue haste by approving the siting of the gold refinery in Lagos without conducting a comprehensive cost–benefit analysis comparing that option with locating the refinery closer to the mining sites.
Regrettably, many politicians of this generation appear to lack strategic foresight and long-term planning, opting instead for decisions that do not outlive their tenure in office.
Another critical issue in this decision-making process is security. Ensuring the safe and uninterrupted transportation of raw gold from Nasarawa State to Lagos poses a significant risk. Unlike crude oil, gold cannot be transported through pipelines; it must be moved physically from mining sites to warehouses and then conveyed by road to the refinery, increasing exposure to theft and insecurity.
A prudent private-sector operator would ordinarily undertake a detailed feasibility study in which potential risks—often described as “elephant traps”—are clearly identified and mitigation strategies properly articulated. Investment decisions of this magnitude must be based on rational analysis, not emotional or political considerations.
It is possible that attractive incentives were offered to the investor, such as pioneer status, tax waivers, free land leases, or reduced tax rates by the Lagos State Government. However, incentives alone should not override sound economic logic.
In all honesty, the Honourable Minister of Solid Minerals, Dr. Dele Alake, should wear both a patriotic and nationalistic cap—complemented by the analytical rigour of an investment analyst. He should present a more realistic proposition to investors: that siting the gold refinery close to where the mineral is mined would be more beneficial to the nation and ultimately more profitable for the Tinubu administration, particularly as it seeks renewed public mandate.
Economic development and prosperity under the Tinubu administration should be seen to reach every corner of Nigeria, not achieved by redistributing opportunities from one region to another—robbing Peter to pay Paul.
President Tinubu must also broaden his developmental focus beyond Lagos. As President of the Federal Republic of Nigeria and holder of the nation’s highest honour, GCFR, his responsibility extends to equitable national development.
Let the truth be told. The Northern Elders Forum has spoken, and the message should not be lost on the Presidency. The era of NADECO agitation has passed, and “Emilokan” represented the opportunity to become President of Nigeria—a far greater prize than remaining a regional leader or former governor of Lagos State.
Ultimately, the credit for establishing Nigeria’s first gold refinery will still accrue to President Tinubu, regardless of its location. That achievement alone would be a significant milestone of his administration.
Mahmud Shuaibu Ringim
📧 mahmudshuaibu44@gmail.com
