The Inner Galaxy Steel Company Limited, a Chinese firm, on Thursday, said it plans to invest approximately $300 million to establish a new steel plant in Ogun State, Nigeria, focused on producing specialised steel products.
The Minister of Steel Development, Prince Audu, disclosed this in Abuja while meeting with a delegation from Inner Galaxy, led by Mr. Li, President of the Inner Galaxy Group, in his office.
He described the move as a welcome development, stating it shows the group’s confidence in the leadership of President Bola Tinubu to turn the fortunes of the nation around through the steel sector.
The minister assured them of the Federal Government’s support in creating an enabling environment and providing other fiscal incentives for their sustainable operation in Nigeria.
In a statement, the Head of Information & Public Relations at the ministry, Salamatu F. Jibaniya, said that the ministry will review the proposal of the company as well as involve relevant government authorities for concessionary benefits within the current operational framework to facilitate the proposed foreign direct investment.
Prince Audu said that the investment aligns with Nigeria’s efforts to diversify its economy under the Renewed Hope Agenda of the current administration.
In his remarks, the Permanent Secretary of the Ministry, Dr. Chris Osa Isokpunwu, lauded the new investment interest of the Chinese company, noting that the Honourable Minister is keen on driving the steel revival efforts of Mr. President.
Dr. Isokpunwu, reiterating trust in the expertise of the Chinese, stated that he expects the Inner Galaxy Group to follow through with their promises by investing in local manufacturing and not becoming a transit point for steel importation.
Earlier, President of the Inner Galaxy Group, Mr. Li, stated that the Group, which has been in operation in Nigeria for over twenty years with current investments in steel production in excess of $1 billion, is seeking the cooperation of the Ministry to facilitate a further investment of $300 million for the establishment of a new steel plant in Nigeria for the production of specialised steel products like plates, angles, beams, and stainless products, amongst others.
Mr. Li noted that the investment is expected to increase the steel production output of the country, reduce Nigeria’s reliance on imported specialised steel products, and conserve scarce foreign exchange, with attendant employment generation opportunities, both direct and indirect, estimated at about 10,000, with other multiplier effects in the economy.
Also, Mr. Wale Adeniyi, CEO of Stanbic IBTC Bank, while speaking, assured the Ministry of the Bank’s readiness to support the numerous initiatives of the Ministry, especially the proposed Industrial Park with a Free-Trade Zone and CNG Park at Ajaokuta Steel Territory.
