Inner Galaxy Steel Company Limited, a Chinese firm, is set to invest $300 million in establishing a new steel plant in Ogun State to produce specialized steel products.
This announcement was made 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 highlighted that this investment aligns with President Bola Tinubu’s economic diversification strategy under the Renewed Hope Agenda, indicating the company’s confidence in Tinubu’s leadership to foster industrialization and enhance the nation’s prospects through the steel sector. He assured the company of the Federal Government’s commitment to creating a conducive environment and offering fiscal incentives to support sustainable operations.
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The minister mentioned that the ministry would review the company’s proposal and work with relevant authorities to explore concessionary benefits within the existing operational framework, emphasizing the initiative’s goal of attracting and facilitating foreign direct investment.
Mr. Li Shuang, President of Inner Galaxy Steel Company Limited, previously met with Minister Audu to seek support for the $300 million investment. Shuang explained that the new plant would focus on producing specialized steel products, including plates, angles, beams, and stainless steel. He noted that this investment would enhance Nigeria’s steel production capacity, reduce reliance on imported specialized steel, conserve foreign exchange, and create employment opportunities.
Shuang estimated that the project would generate 10,000 direct and indirect jobs, alongside various economic multiplier effects. He also mentioned that Inner Galaxy has been operating in Nigeria for over 20 years, with existing investments in steel production exceeding $1 billion.
Inner Galaxy Steel Company Limited is a subsidiary of Hongxing Steel Company Limited, which operates four other subsidiaries in agriculture and oil and gas. The company’s website indicates that it owns a production plant in the Amuwo Odofin area of Lagos.
According to the National Steel Raw Materials Exploration Agency (NSRMEA), Nigeria’s steel consumption averages 10 million metric tonnes annually, with 70% of this demand met through imports. The Minister of Steel Development has previously noted that the country spends about $4 billion each year on steel imports, despite having approximately 74 steel plants and fabricators across the nation.
Earlier this year, Alhaji Aliko Dangote, Chairman of Dangote Industries Limited, announced plans to enter the steel production sector to meet the country’s demand. However, he later halted these plans due to issues with government authorities regarding his refinery.
