……firm Pledges $300 million to New Steel Plant in Nigeria
The Esteemed Minister of Steel Development, Prince Audu, welcomed a delegation from the Inner Galaxy Steel Company Limited, a Chinese firm, who pledged an investment of $300 million to establish a new Steel Plant in Ogun State, Nigeria.
This initiative aligns with the country’s strategy of economic diversification under the Renewed Hope Agenda of the current administration.
Prince Audu, accompanied by the Ministry’s Permanent Secretary, Dr. Chris Osa Isokpunwu, and other key officials, as well as Mr. Wole Adeniyi, the Chief Executive Officer of Stanbic IBTC Bank PLC, and his team, received the delegation on Wednesday, October 16, 2024, at the Ministry’s Headquarters in Abuja.
He lauded this development as a positive step, demonstrating the Inner Galaxy Group’s confidence in President Bola Ahmed Tinubu’s leadership to revitalize the nation’s steel sector.
The Minister assured the delegation of the Federal Government’s commitment to creating a conducive environment and offering fiscal incentives to support their sustainable operations in Nigeria.
He mentioned that the Ministry would evaluate the Company’s proposal and collaborate with relevant Government bodies to facilitate the proposed foreign direct investment within the existing operational framework.
Dr. Chris Osa Isokpunwu, the Ministry’s Permanent Secretary, commended the Chinese Company’s new investment interest, emphasizing the Minister’s dedication to advancing Mr. President’s efforts to revive the steel industry.
Dr. Isokpunwu expressed confidence in the Chinese expertise, urging the Inner Galaxy Group to fulfill their commitments by investing in local manufacturing rather than solely serving as a hub for steel imports.
Mr. Li, the President of the Inner Galaxy Group, revealed that the Company, operating in Nigeria for over two decades with current steel investments exceeding $1 billion, seeks the Ministry’s collaboration to facilitate an additional $300 million investment for a new Steel Plant in Nigeria. This facility would specialize in producing steel products such as plates, angles, beams, and stainless items.
Mr. Li highlighted that this investment aims to boost the country’s steel production capacity, reduce dependence on imported specialized steel products, conserve foreign exchange reserves, and create employment opportunities. The direct and indirect employment generated is estimated to reach around 10,000, with additional positive impacts on the economy.
Furthermore, Mr. Wale Adeniyi, the CEO of Stanbic IBTC Bank, expressed the Bank’s readiness to support the Ministry’s various initiatives, particularly the proposed Industrial Park with a Free-Trade Zone and CNG Park at Ajaokuta Steel Territory.
