On Nnamdi Kanu's whereabouts, he denied that the IPOB leader is in their custody while also justifying the military clampdown on the now proscribed group.
But, the President-General of the apex Igbo socio-cultural group, Ohanaeze Ndigbo, Chief John Nwodo, described IPOB's proscription as "extremely unfair".
But in his reaction on BBC Focus on Africa Wednesday night, Lai Mohammed regretted the position of the United States on the IPOB issue, lamenting that it was "unfortunate".
The British government said it had asked the federal government to clarify the status and whereabouts of the leader of the Indigenous People of Biafra, Nnamdi Kanu who is a British national, whether he is alive or dead.
"It is very unfortunate, if countries decide to pick and choose which organisations are terrorists and which are not, bearing in mind that terrorism has no boundary".
Asked why IPOB was categorised as a terrorist organisation, Mohammed said: "The acts and utterances of IPOB were acts and utterances of terrorists".
The Nigerian Army barely two weeks ago pronounced the Indigenous People of Biafra a terrorist organisation following a clash between members of the group and the military.
The United States had earlier said it did not consider IPOB a terrorist group and urged Nigerians to de-escalate tension and embrace peaceful resolution of grievances.
The Minister, who stressed that the Federal Government was right in declaring IPOB a terrorist organisation, noted that he could not make up with the USA seemingly disagreement with the position. "The world has a moral duty and obligation to put an end to dictatorial regimes such as we are witnessing in Nigeria today".
Spokesperson for the American Embassy in Nigeria, Russell Brooks, had said, "Within the context of unity, we encourage all Nigerians to support a de-escalation of tension and peaceful resolution of grievances".