The Federal Government of Nigeria has moved to quell a rising storm of regional discontent, issuing a clarification on the controversial decision to establish a major gold processing plant in Lagos State.

The clarification comes hot on the heels of a fierce backlash from the Northern Elders Forum (NEF), who have termed the decision a "grave injustice." The core of the dispute lies in geography and economics: while the gold is mined in the rugged terrains of Zamfara and other northern states, the value addition—and the jobs that come with it—is being exported to the commercial hub of Lagos.

The Logic of Logistics vs. The Pain of Extraction

Government officials argue that Lagos offers the necessary infrastructure, security, and export logistics that the conflict-prone mining regions lack. "You take the gold to where the market is accessible," a ministry source stated. However, this economic pragmatism has done little to soothe the feeling of exploitation in the North.

• The Northern Argument: "We bleed for the gold, but Lagos eats the profit." The NEF insists that siting industries near raw materials is standard economic practice to spur local development.
• The Lagos Advantage: Proximity to ports and reliable power makes it the only viable option for a high-tech refinery.

A Continental Dilemma

This tussle is eerily familiar to Kenyans. It mirrors the debates over the location of value-addition factories for Kwale's titanium or Turkana's oil. The "Curse of Resources" often means that those who sit on the wealth remain the poorest, while the elite in the capital reap the rewards.

As the debate rages, the Federal Government finds itself walking a tightrope. Promoting national industrialization is the goal, but if it comes at the cost of deepening regional fractures, the price of this gold may be too high.