Inner Galaxy Steel Company Limited, a Chinese firm, plans to invest $300 million in establishing a new steel plant in Ogun State to produce specialized steel products.
This was disclosed by the Minister of Steel Development, Prince Shuaibu Audu, in a statement released by Salamatu Jibaniya, the ministry’s Head of Information and Public Relations Unit, on Thursday in Abuja.
Audu noted that the investment aligns with President Bola Tinubu’s economic diversification policy under the Renewed Hope Agenda, reflecting the company’s confidence in Tinubu’s leadership to drive industrialization and boost the nation’s prospects through the steel sector.
The minister assured the company of the Federal Government’s commitment to providing an enabling environment and fiscal incentives to support sustainable operations.
He added that the ministry would review the company’s proposal and engage relevant authorities to explore concessionary benefits within the existing operational framework, emphasizing that this initiative aims to attract and facilitate foreign direct investment.
Mr. Li Shuang, President of Inner Galaxy Steel Company Limited, had earlier met with the Minister of Steel Development, Prince Shuaibu Audu, to seek the ministry’s support for a $300 million investment to establish a new steel plant in Nigeria.
Shuang explained that the plant would focus on producing specialized steel products, including plates, angles, beams, and stainless steel, among others. He highlighted that the investment would boost Nigeria’s steel production capacity, reduce dependence on imported specialized steel, conserve foreign exchange, and generate employment opportunities.
According to Shuang, the project is expected to create 10,000 direct and indirect jobs, alongside other economic multiplier effects. He also noted that the company has been operating in Nigeria for over 20 years, with its existing investments in steel production surpassing $1 billion.
What you should know
The company in question, Inner Galaxy Steel Company Limited is a subsidiary of Hongxing Steel Company Limited- which owns four other subsidiaries with interests in agriculture and oil and gas. The company according to its website owns a production plant in the Amuwo Odofin area of Lagos.
- The National Steel Raw Materials Exploration Agency (NSRMEA) reports that Nigeria’s steel consumption averages 10 million metric tonnes annually, with 70% of this demand met through imports. The Minister of Steel Development previously noted that the country spends approximately $4 billion each year on steel imports, despite the presence of about 74 steel plants and fabricators nationwide.
- Earlier in the year, Chairman of Dangote Industries Limited, Alhaji Aliko Dangote announced plans to venture into Steel production and meet the country’s steel demand but halted such plans after problems with the government authorities concerning his refinery.