Inner Galaxy Steel Company Limited, a Chinese firm, has announced plans to invest $300 million in establishing a new steel plant in Ogun State, Nigeria.
This development was revealed by the Minister of Steel Development, Prince Shuaibu Audu, in a statement issued in Abuja.
The new plant will specialize on manufacturing steel products, such as stainless steel, plates, beams, and angles.
This investment is a key part of Nigeria’s economic diversification under President Bola Tinubu’s Renewed Hope Agenda. Prince Audu emphasized that this move reflects the company’s confidence in the Tinubu administration’s ability to foster industrial growth, especially in the steel sector.
The minister reassured the company of the Federal Government’s commitment to creating an enabling environment and providing fiscal incentives to ensure the project’s success.
Audu emphasized that the goal of this program is to draw in and facilitate foreign direct investment, adding that the ministry would examine the company’s request and consult with the appropriate authorities to investigate concessionary benefits within the current operational framework.
Inner Galaxy’s President, Mr. Li Shuang, who met with the minister, expressed optimism about Nigeria’s steel market. Shuang highlighted that the plant would significantly boost the country’s steel production capacity, reduce dependency on steel imports, enhance local steel production, conserve foreign exchange, and create around 10,000 direct and indirect jobs.
Inner Galaxy has been operating in Nigeria for over two decades, with its existing investments exceeding $1 billion.
The plant’s establishment comes at a crucial time, as Nigeria’s steel industry faces a supply-demand gap. According to the National Steel Raw Materials Exploration Agency (NSRMEA), Nigeria consumes about 10 million metric tonnes of steel annually, with 70% of this demand met through imports.
Financial institutions like Stanbic IBTC Bank, has pledged support for the initiative, in a step toward reviving the nation’s steel sector.
This partnership is expected to contribute to the overall economic growth of Nigeria, enhancing industrial self-sufficiency and job creation.
