Inner Galaxy Steel Company Limited, a Chinese steel manufacturer, has announced plans to invest $300 million in establishing a new steel plant in Ogun State, Nigeria. The facility will focus on producing specialized steel products such as plates, angles, beams, and stainless steel. This investment marks a significant step towards boosting Nigeria’s industrialization and reducing the country’s reliance on imported steel.
The development was disclosed by Nigeria’s Minister of Steel Development, Prince Shuaibu Audu, through a statement issued by Salamatu Jibaniya, Head of Information and Public Relations in the ministry. Audu emphasized that the investment aligns with President Bola Tinubu’s economic diversification policy, known as the Renewed Hope Agenda. He noted that Inner Galaxy’s commitment reflects growing confidence in Tinubu’s leadership and the government’s efforts to industrialize key sectors of the economy, including steel.
The minister assured the company that the Federal Government is dedicated to creating an enabling environment to support sustainable industrial operations. This includes offering fiscal incentives and engaging relevant authorities to explore concessionary benefits that could facilitate the project’s smooth implementation. According to Audu, the initiative is part of broader efforts to attract and secure foreign direct investment (FDI) in Nigeria, which is crucial for expanding the country’s manufacturing base and improving its global competitiveness.
Mr. Li Shuang, President of Inner Galaxy Steel Company Limited, also reiterated the company’s long-term commitment to Nigeria during a recent meeting with the minister. Shuang revealed that the proposed steel plant is expected to significantly enhance Nigeria’s steel production capacity, reducing the country’s dependence on imported steel and conserving foreign exchange. By focusing on the production of specialized steel products, the plant will meet local demand while supporting industries such as construction, automotive, and infrastructure development.
Shuang also noted the broader economic impact of the investment, stating that the project is expected to create 10,000 direct and indirect jobs. This will not only provide employment opportunities but also spur economic growth through a range of multiplier effects, including supply chain development and increased demand for local goods and services. The project is seen as a key driver in boosting Nigeria’s industrial capacity and strengthening its position as a hub for steel production in West Africa.
Inner Galaxy has a long history of operation in Nigeria, with over 20 years of experience in the country’s steel industry. Shuang highlighted that the company’s existing investments in Nigeria exceed $1 billion, with its current operations already playing a significant role in the domestic production of steel. The new plant in Ogun State will build on these foundations, contributing to Nigeria’s vision of becoming self-sufficient in steel production.
The Federal Government’s support for this project underscores its broader commitment to fostering an investment-friendly climate. By providing necessary incentives and streamlining regulatory frameworks, the government aims to encourage further FDI inflows into sectors critical for Nigeria’s economic development. Steel, in particular, is viewed as a strategic industry, as it forms the backbone of infrastructure and industrial activities. Enhancing local production capacity is therefore essential for reducing imports, conserving foreign exchange, and achieving the country’s long-term industrialization goals.
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