₦airaland Forum

Gajagojo:
You have not told us why there is a benefit from having a refinery next to an oil well as opposed to next to the consumer
Or what the benefit is
The flaw in your thinking is refineries must use oil from their countries . That is wrong there is no reason why that must happen they may get better deals elsewhere.
Another assumption is that the refinery must sell in Nigeria
I can set up a refineriy using100% imports and exporting 100%. It is a business period
It is not OUR THING. It is not your business it is his business
)
Shell does not have a refinery in Nigeria but chose to open major refineries in Singapore that has no oil refining oil that is maybe from its Nigerian operations

It is not only oil

This thread is about gold

Switzerland refines more than half the world gold

It has no gold of its own
Over 70 % of world cocoa comes from West Africa chocolate is made in Europe America and other places

Iron Ore Australia is number one producer but is not in the top 10 of steel producers
Diamonds
India , Belgium Israel and UAE are the top diamond cutting locations
They don't produce diamonds

We can go on and on


A refinery is a business not a government parastatal

Those who build refineries are making business decisions


YOUR CLAIM ABOUT SITING NEXT TO RAW MATERIAL IS THEORY
SITING CAN BE NEAR MARKETS

At any rate whether good or bad HOW IS THAT YOUR BUSINESS.

It is private enterprise

IGBOPROMISE1:
You’re missing the point! Build the refinery close to its source of primary raw materials, then you can service customers with the refined products either through pipelines, trucks or by rail! All those fancy new rail tracks you’ve laid, primarily in the south-west and north, you think they’re just for ferrying human beings about!? It’s insensitive and smacks of a high degree of arrogance when you go and build a refinery in the north when the area that produces the hydrocarbons are either ignored or just given tokenisms to hoodwink them and shut them up!

Your argument supporting building a refinery far away from its source of primary raw materials is all shades of wrong! In the case of Kaduna refinery, it’s obvious where they planned to source their raw products from. The pipes they laid from the Niger-Delta to the refinery in the north is as good a hint as any! The fact both crude and refined oil importation into Nigeria is done with ships and not desert Camels further punches holes in your argument! Also, since the late 60s, the Nigerian gov’t has told anyone who cares to listen that oyel and gas found anywhere in Nigeria now belongs to them…meaning they have unquestioned and unhindered rights to sell or dash it to whomsoever they please, and this includes their state-owned refineries! So why then should they go and site a refinery in Kaduna when free and unlimited oil and gas would be sourced for it from the Niger-Delta!? Fact of the matter is Kaduna was chosen to site a refinery based solely on ethno-religious considerations and covetousness! Shikena!!!

There you go again confusing issues! The countries you mentioned are not producing the raw materials to refine (or cut, as the case may be) in the industries you mentioned. Rather, they buy the raw materials from abroad to refine at home, add value, then export and make a tidy profit for themselves! Had it been they had gold or diamond mines in their own countries….especially a coastal region with proximity to seaports, i very much doubt they’d go and build refineries on the other side of the country just to assuage certain peoples feelings of inadequacy and desire to covet other peoples oyel and gas!

Regarding the OP, if the gold refinery is a private concern, why then are the Arewa fellas mentioning Tinubu name!? My arguments here were are in reference to Nigerian gov’t-owned or gov’t-enabled multi-million/billion dollar industries, and speaks of how common sense and sound economic logic are sometimes relegated to the back burner when choosing where to site them!

Gajagojo:
Too long
No point
Empty talks

Singapore with. No oil is exporting $54 billion of refined products a year
Nigeria can only dream of that with all its oil

With respect you are talking nonsense


Refinery business can thrive ANYWHERE

It has NOTHING to do with having oil

Bottomline it is business
Do you know more than Dangote? You just come here to talk rubbish
Go and build your own refinery next to the oil well

IGBOPROMISE1:
Small post is difficult for your sort to absorb and comprehend! Seems you struggle to cope with any post that comes with words and paragraphs over a certain threshold! Anything more and your short attention span goes into meltdown!

Dude, go back a reread my last post where i addressed the issue of Singapore, South-Korea and others who buy raw materials from other countries to process/refine to add value either for domestic use or to sell abroad for profit! YOU CANNOT DRAW SIMILARITIES BETWEEN THEIR CASE AND THAT OF NIGERIA BECAUSE THEY IMPORT THEIR RAW MATERIALS, WHILE IN THE CASE OF NIGERIA, IT REFINES ITS OWN CRUDE OIL AND PROCESSES ITS OWN GAS! NIGERIA OWNS REFINERIES AND ALSO OWNS MAJOR SHARES IN THE LNG GAS COY! THE NIGERIAN GOV’T INFLUENCED THE LOCATION OF ALL THE ABOVE MENTIONED COYS, AND MY POINT HAS ALWAYS BEEN THAT, IN THE CASE OF THE KADUNA REFINERY, ITS LOCATION MAKES NO ECONOMIC SENSE, WAS ILL-JUDGED, AND WAS BASED ON ETHNO-RELIGIOUS SENTIMENTS! PRAY, WHY DIDN’T DANGOTE EQUALLY LOCATE HIS REFINERY IN THE NORTH!? YES, REFINERY BUSINESS CAN THRIVE ANYWHERE, BUT IN THE CASE OF NIGERIA, THE ISSUE IS NUANCED AND NOT TO BE COMPARED WITH THOSE COUNTRIES YOU USED AS CASE STUDIES BECAUSE IN THE CASE OF NIGERIA, IT OWNS THE RAW MATERIALS BEING PROCESSED SO THAT FACT SHOULD INFLUENCE THE SITING OF THE PROCESSING/REFINING COYS INVOLVED. KAPISH!?

Newsmills:
Thanks for lesson,is that all,by the end of the lesson,what do you envisage I have learnt.

alphonsoolajide:
The Federal Ministry of Solid Minerals Development has dismissed claims by the Northern Elders Forum (NEF) that the Federal Government is planning to site a gold refinery in Lagos, describing the allegation as false and misleading. Eyes Of Lagos reports,

The NEF, in a statement signed by its spokesperson, Prof. Abubakar Jiddere, had alleged that locating a gold refinery in Lagos violated the federal character principle, suggesting government involvement in the project.

However, reacting to the claim in a statement issued on Sunday in Abuja, the Special Assistant on Media to the Minister of Solid Minerals Development, Mr Segun Tomori, faulted the position of the Northern elders, insisting that the Federal Government neither owns nor established any gold refinery in Lagos.

Tomori clarified that the Minister of Solid Minerals Development, Dr Dele Alake, never announced the establishment of a government-owned gold refinery in Lagos or anywhere else in the country.

According to him, the refinery referenced by the NEF is a private initiative undertaken by Kian Smith, a privately owned mining company.

“At no point did Dr Dele Alake state that the Federal Government owns or established a gold refinery in Lagos,” Tomori said.

“The refinery in question is a private venture, and government cannot dictate to a private investor where to locate its business.”

He further explained that the minister had clearly stated that several other gold refineries are in development across the country, all of which are privately owned by different investors.

FG Explains Value-Addition Policy

Tomori noted that the Lagos-based gold refinery reflects the Federal Government’s value-addition policy in the solid minerals sector, which aims to discourage the export of raw minerals and promote local processing and manufacturing.

He described the refinery as an initiative of Kian Smith, led by its founder and Managing Director, Ms Nere Emiko, commending her perseverance and leadership in delivering the project.

“The Federal Government acknowledges the resilience and enterprise of the company’s leadership in bringing a flagship project of this magnitude to fruition,” he added.

The ministry also highlighted other major private-sector investments stimulated by recent reforms in the solid minerals sector, including:

A $600 million lithium processing plant in Nasarawa State

A $400 million rare earth minerals plant also in Nasarawa

A $200 million ASBA lithium plant in Abuja

According to Tomori, these projects have attracted significant foreign investment, created thousands of jobs, and strengthened Nigeria’s non-oil revenue base.

Tomori said reforms introduced by the Ministry over the past two years had created an enabling environment for private-sector participation in mining, adding that projects like the Lagos gold refinery demonstrate the success of those reforms.

He urged the Northern Elders Forum to support ongoing efforts by President Bola Ahmed Tinubu to diversify the economy and promote self-reliance.

“The Ministry of Solid Minerals Development will continue to encourage mining companies to establish processing and manufacturing plants across Nigeria,” he said.

“We urge the NEF to join hands with the Federal Government in building a stronger, self-reliant economy that serves the interest of all Nigerians.”

https://eyesoflagos.com/2026/01/19/fg-dismisses-northern-elders-claim-lagos-gold-refinery/

Newsmills:
But the private gold refinery in Lagos,where will the company get the gold from to refine,proximity to raw material and market are crucial to siting of industry.A lying government.

Newsmills:
But the private gold refinery in Lagos,where will the company get the gold from to refine,proximity to raw material and market are crucial to siting of industry.A lying government.

Gajagojo:
Nigeria government couldn't influence Shell to build a single refinery in Nigeria?

Go and build your own refinery next to oil well since Dangote doesn't know what he is doing

Gajagojo:
You will. Not see 2027

Coolgent:
Back to sender!
Sycophant!

AlphaTaikun:
That's a highly impressive response from the Federal Government to those sets of ill-advised and ill-informed so called Northern elders who are actually the minority Fulas. These guys do NOT speak for other ethnicities in the North of Nigeria.

The summary is that GOLD deposits EXIST in Osun and Ogun States for instance and the foreign private-sector investor chose to set up his gold refinery in Lagos State. The gold deposits in Zamfara State are being carted away by Fula bandits and Lakurawa, so, Nigeria hasn't been benefiting from the gold deposits in the North West ethnic Hausa States of Zamfara and a few others where gold is mined.

Gajagojo:
Does not matter where gold deposits are

It is a private business and they can locate wherever they like

More than half of the gold in the world is refined in Switzerland

Fact check my claim

Switzerland has zero gold deposits

IGBOPROMISE1:
You have serious comprehension issues! It’s either that, or you’re just pretending to be daft as you clutch at straws!

Dude, i can assure you that had Shell decided to build a refinery in Nigeria, Kaduna would be the last place on earth they’d choose!

Dangote built his own close to a seaport and with EPZ status (i stand to be corrected on the later assertion)! If he was thinking like the muppets who decided to build a refinery in Kaduna, he would have tried to build his in the north as well, then spend extra money to construct pipelines to connect with the Niger-Delta and southern ports!

Gajagojo:
Are you changing your story

Stop drifting

The bone of contention is there is no requirement for refineries to be near well heads

You don't even need to have oil in your country

So stop using style to change topic
I won't fall for that

Dangote built his refinery in Lagos because he foresaw a future not depending on Nigerian crude
He built it where he could receive imports and designed it as such
Also the refinery design is such that it can refine other types of crude than Bonny Light the Nigerian crude which is the most expensive


Your premise tha refineries must be close to oil Wells is nonsense

IGBOPROMISE1:
‘Changing story’ how!? I’ve maintained the same position right from my first reply to you on this thread!

Dude, there IS a economic requirement and argument to be made for a refinery being located near its source of primary raw feedstock, especially with regards to Nigeria embarking on construction of refineries! The choice of Kaduna by the military despots of the time was a purely a political and ethno-religious based one, and made no economic sense! Similar considerations were at play in locating other state funded/owned industries like a certain steel industry and steel rolling mill!

This was what i said in my initial reply to you: ‘One of the first things we learnt in Economics class in secondary school is that siting of industries are primarily determined by closeness to source of primary raw material! Note the use of the word ’primarily’, which means other economic factors exist for consideration, but closeness to source of primary raw material[i] is a major if not the top economic consideration! Another economic consideration would be closeness to import/export facilities like seaports or airports, and you alluded to this in your quoted post above with the Dangote example! Pray tell, what was the economic consideration for siting a refinery in Kaduna!?

You ended by putting words in my mouth when you said: [i]’Your premise tha refineries must be close to oil Wells is nonsense!’ At no point did i say refineries MUST be close to oil wells! I never said it was mandatory! Quote the exact part in any of my previous posts where i said such!

Gajagojo:
You are talking nonsense

NIGERIA IS NOT embarking on anything
These are private business decisions we are discussing
Stop repeating the same crap about Nigeria
The biggest refineries in the world are in India South Korea Singapore
When you build your refinery in the Niger-Delta let us know
You don't have to use the word MUST so if you want to retract feel free
You said closeness to raw materials is a PRIMARY DETERMINING FACTOR

I am telling you with my full chest with regard to crude refinery business THAT IS NONSENSE
The biggest company in Nigerian history operated there for decades and did not build a single refinery there
Instead they built in Singapore
This thread is about gold

Switzerland refines more gold than any other country


All of it is imported

That same Switzerland makes more chocolate than Africa
The cocoa comes from Africa

You are clueless

IGBOPROMISE1:
Dude, you can’t say anything with your ‘full chest’ because you’re bereft of logic and common sense! The only thing you’re full of is deceit and diversionary rhetoric!

Whether a business is private or public/gov’t-owned, it exists primarily to make profit! Unless of course it’s a philanthropic organisation or established to further a political or ethno-religious agenda, in which case making profit may not be its primary focus or could feature side-by-side with economic considerations! In the case of the Kaduna refinery, under which category would you group it…the former or the latter? I argue the latter, as its location makes no economic sense! YOU CAN TELL US THE ECONOMIC ARGUMENT FOR LOCATING A REFINERY IN KADUNA! We await your response with bated breath!

You assert that some of the biggest refineries are in India, South-Korea and Singapore! Since these countries are not oil producing and have to import their feedstock, does it make any sense that, assuming land for their refineries are available close to their seaports, that they would be built on the other side of the country, far away from any seaports, then underground pipelines would be constructed….transversing the country to send imported crude to the refineries in the hinterland!? This is the economic argument i’m trying unsuccessfully to explain to you! Now, of course their could be other considerations that may trump the economic in determining where to locate said refineries, and these could be political, ethno-religious or even security reasons…all of which would need justification, as choosing them would mean the coys would not run as efficiently as they could!

That Shell operated for decades in Nigeria without building a single refinery, and instead built one in Singapore that isn’t a oil producing country, says more about their confidence in the ease of doing business in Nigeria, and in the final analysis is a ECONOMIC DECISION as well!

You can’t use the example of Switzerland not producing gold or chocolate but have large or the largest refining capacities in the world for raw products…..you can’t use that as a case in point to support your ‘argument’ because there’s no correlation! Nigeria has large quantities of gold and hydrocarbon reserves, so in our case (whether the business is private or public/gov’t owned) when deciding where to locate a industry for refining/exploiting oil, gold, or even lithium as in the case of Nasarawa, a primary consideration should be locating it close to its source of raw material! In the case of Dangote, since he had in mind to import crude and export refined products from his refinery, a primary consideration in determining where to locate his refinery would be its closeness to a seaport or export facilities, which again is a ECONOMIC DECISION! Why do you think he didn’t choose Talata-Mafara in deepest northern Nigeria to locate his refinery!?

At the end of the day, ECONOMIC CONSIDERATIONS are the primary determining factor when choosing where to site a business! As Bill Clinton would say….’it’s the economy stupid!’

Gajagojo:
You know I won't read this nonsense explanation without evidence
You are derailing this thread which is about gold

Your claim that refineries need to be close to oil wells you gave failed to substantiate with evidence
I have debunked that claim with examples of the largest oil refineries in the the world

WHERE IS YOUR EVIDENCE

IGBOPROMISE1:
You claim not to have read the ‘nonsense explanation’ yet you’ve concluded my last post doesn’t answer your repetitive questions! You see how you’re failing over your own statements!?

The thread is about refining raw materials, adding value, and then selling for a profit that can justify setting up the business in the first place! The only one derailing the thread is you and your daft ‘Singapore, South-Korea's and Switzerland’ allusions which are misplaced and which you can’t support with any well reasoned argument!

Yet again, i’ll reiterate my response to your diversionary and off-point ‘argument’: You can’t use the example of Switzerland not producing gold or chocolate but have large or the largest refining capacities in the world for raw products…..you can’t use that as a case in point to support your ‘argument’ because there’s no correlation! Nigeria has large quantities of gold and hydrocarbon reserves, so in our case (whether the business is private or public/gov’t owned) when deciding where to locate a industry for refining/exploiting oil, gold, or even lithium as in the case of Nasarawa, a primary consideration should be locating it close to its source of raw material! In the case of Dangote, since he had in mind to import crude and export refined products from his refinery, a primary consideration in determining where to locate his refinery would be its closeness to a seaport or export facilities, which again is a ECONOMIC DECISION! Why do you think he didn’t choose Talata-Mafara in deepest northern Nigeria to locate his refinery!?

The Kaduna refinery location was based on political and ethno-religious sentiments! I dare you to make an economic case to support its choice of location!

Gajagojo:
Your claim that refineries need to be close to oil wells you have failed to substantiate with evidence
I have debunked that claim with examples of the largest oil refineries in the the world

WHERE IS YOUR EVIDENCE

IGBOPROMISE1:
You keep parroting on the same lost argument! It appears your obfuscating and diversionary well is starting to run dry!

You’re too dense to understand this issue is a bit nuanced and requires more than just a black-or-white or binary analytical approach to explaining it!

You say a refinery doesn’t have to be located near oyel wells…and i’ve not said any different! But you’ve so far failed to qualify and flesh out your statement, like i’ve done mine, by stating on what basis this can happen yet still be explained from a rational and/or economic point of view! The existence of refineries in Singapore, Switzerland and South-Korea can be explained from a rational and economic point of view, even as they don’t have commercially viable hydrocarbon deposits! Kaduna refinery on the other hand, (and it would appear you see nothing wrong in its choice of location) cannot be justified rationally or economically! It can only be explained politically and on a ethno-religious basis!

There’s a saying that’s gained currency in Nigeria in recent months….that you can’t wake a person pretending to be asleep! I find that saying perfectly explains your situation on this issue…..there’s just no level of explanation that will make you wake up and have sense, so you act daft for reasons best known to you , hence the repetitive parroting!

Gajagojo:
Your claim that refineries need to be close to oil wells you have failed to substantiate with evidence
I have debunked that claim with examples of the largest oil refineries in the the world

WHERE IS YOUR EVIDENCE

IGBOPROMISE1:
Just as i predicted! More copy-and-paste parroting! Dude, you’re pathetic!

Oya….copy and paste the usual bullshit in reply!

Gajagojo:
But you Don have proof?

IGBOPROMISE1:
So you did whatever you did and the useless anti spambot kicked in and removed my comment last comment on this thread! I’m under no illusions as to the capacity for some on here to masquerade and pretend to be ‘normal’ forum members, while at the same time using powers regular forum members don’t possess to silence voices they want silenced! If you can’t take the heat, get out of the kitchen!