In a significant move to strengthen Nigeria’s steel industry, Inner Galaxy Steel Company Limited has announced its commitment to invest approximately $300 million in establishing a new steel plant in Ogun State. This investment is part of a broader effort to diversify the country's economy under the Renewed Hope Agenda of the current administration. The announcement was made during a meeting between a delegation from Inner Galaxy and Prince Audu, Nigeria’s Minister of Steel Development, in Abuja.
Minister Audu expressed optimism about the investment, emphasizing that it reflects the company’s confidence in the leadership of President Bola Ahmed Tinubu. He noted that such investments are crucial for transforming Nigeria’s economic landscape, particularly through the revitalization of the steel sector. The minister assured the delegation of the federal government’s commitment to creating a favorable environment for their operations and providing fiscal incentives to support their long-term sustainability in Nigeria.
In addition to the minister’s remarks, Dr. Chris Osa Isokpunwu, the Permanent Secretary of the Ministry, acknowledged the positive impact of Inner Galaxy's investment interest. He highlighted the importance of ensuring that the investment contributes to local manufacturing rather than merely serving as a transit point for imported steel. Dr. Isokpunwu expressed confidence in the expertise that the Chinese company brings to the table and reiterated the ministry's commitment to facilitating this investment process.
The Inner Galaxy Group has been operating in Nigeria for over twenty years, with existing investments in steel production exceeding $1 billion. Mr. Li, the President of Inner Galaxy Group, outlined the company's plans to produce specialized steel products, including plates, angles, beams, and stainless steel items. This new plant is expected to significantly boost the country’s steel production output and reduce Nigeria’s reliance on imported specialized steel products.
By establishing this plant, Inner Galaxy aims not only to increase local production but also to help conserve foreign exchange reserves. The investment is projected to generate around 10,000 jobs, both directly and indirectly, providing substantial benefits to the local economy. The multiplier effects of this investment could lead to improved infrastructure and increased economic activity in Ogun State and beyond.
Furthermore, Mr. Wale Adeniyi, the CEO of Stanbic IBTC Bank, expressed the bank's readiness to support the Ministry of Steel Development's initiatives, particularly in developing an Industrial Park with a Free-Trade Zone and a Compressed Natural Gas Park at Ajaokuta Steel Territory. This collaboration aims to create a robust industrial ecosystem that complements the new investments in the steel sector.
