The Minister of Steel Development, Prince Abubakar Audu recently hosted a delegation from Inner Galaxy Steel Company Limited, a Chinese firm that has committed to investing $300 million in setting up a new steel plant in Ogun State, Nigeria.
This investment aims to boost the production of specialised steel products, aligning with Nigeria’s strategy to diversify its economy under the ‘Renewed Hope’ agenda of President Bola Ahmed Tinubu’s administration.
At the meeting, which took place on October 16, 2024, at the ministry’s headquarters in Abuja, Audu was joined by the permanent secretary, Dr. Chris Isokpunwu, other senior officials and the chief executive officer of Stanbic IBTC Bank Plc, Mr. Wole Adeniyi. The minister described the investment as a “positive development,” stating it reflected the group’s confidence in the government’s leadership and its commitment to reviving the steel sector to transform Nigeria’s fortunes.
The minister further assured the delegation of the Federal Government’s full support, including creating an enabling environment and offering fiscal incentives for sustainable operations in the country. He further emphasised that the Ministry would carefully review the company’s proposal and collaborate with other relevant government agencies to secure concessionary benefits within the existing regulatory framework, aimed at facilitating this foreign direct investment.
Isokpunwu lauded the interest shown by Inner Galaxy Steel Company, expressing confidence in the minister’s determination to drive steel sector revitalisation efforts. He noted that the Ministry expects the company to follow through on its promises, particularly by focusing on local manufacturing rather than merely acting as a transit point for steel imports.
Earlier, the president of Inner Galaxy Group, Mr. Li shared that the company has been operating in Nigeria for over two decades, with its current steel production investments exceeding $1 billion. Now, the company seeks the ministry’s cooperation in facilitating an additional $300 million investment to establish a new steel plant. The proposed plant will focus on producing specialised steel products, including plates, angles, beams, stainless products, among others.
Li emphasised that this new investment would significantly boost Nigeria’s steel production capacity, reduce the country’s dependence on imported steel products, and help conserve scarce foreign exchange. He also highlighted the employment potential, estimating that the new plant could generate around 10,000 direct and indirect jobs, contributing to Nigeria’s broader economic growth.
In his remarks, the CEO of Stanbic IBTC Bank, Mr. Wale Adeniyi reaffirmed the bank’s readiness to support the ministry’s various initiatives. He expressed particular enthusiasm for the proposed industrial park, which would feature a free-trade zone and a compressed natural gas (CNG) park in Ajaokuta Steel territory. This initiative, Adeniyi noted, aligns with Nigeria’s industrialisation and economic diversification goals.
A statement released by the ministry’s head of information and public relations, Salamatu Jibaniya confirmed that discussions between the ministry, Inner Galaxy Steel Group and Stanbic IBTC Bank had been constructive. The participants agreed that the collaboration would mark a significant step forward in Nigeria’s journey toward industrial self-sufficiency, particularly in the steel sector.
Audu’s closing remarks underscored the importance of sustainable foreign investment in Nigeria’s steel industry. He stated that the proposed partnership with Inner Galaxy would not only strengthen the country’s manufacturing capabilities but also contribute to the national agenda of job creation and economic diversification. The minister reiterated the government’s commitment to providing all necessary support to ensure the project’s successful implementation.
With these developments, Nigeria stands to benefit from a strengthened steel sector, which is expected to be a major driver of the country’s economic transformation.
