Chinese company Inner Galaxy Steel Company Limited has announced that it is investing approximately $300 million in the production of specialty steel products in Ogun State, Nigeria.
This was revealed after a delegation from the company visited Shuaib Odu, Minister of Steel Development.
on Wednesday at his office in Abuja.
Mr Audu welcomed the delegation along with the Permanent Secretary of the Ministry, Mr Chris Osa Isokpunwu, along with other directors and the Chief Executive Officer of Stanbic IBTC Bank, Mr Wole Adeniyi and his team.
The minister described the move as a welcome development and an expression of the group’s confidence in the leadership of President Bola Ahmed Tinubu to turn around the country’s fortunes through the steel sector.
He assured the delegation of the Federal Government’s intention to create an enabling environment and provide financial incentives for sustainable operations in Nigeria, adding that the Ministry would consider the company’s proposal and ensure that it would be within the current operational framework. In order to obtain concessional benefits, the relevant government authorities will be involved.
In his remarks, the Permanent Secretary of the Ministry, Chris Osa Isokpungwu, noted that the Ministry is keen to advance the President’s steel revitalization efforts and praised the new investment interests of Chinese companies.
He reiterated his faith in the expertise of the Chinese people and said he expected Inner Galaxy Group to make good on its commitments to invest in local manufacturing and avoid becoming a transit point for steel imports.
Earlier, Lin Weiming, President of Inner Galaxy Group Re, said that the company has been operating in Nigeria for over 20 years, and current investment in steel production is over $1 billion, encouraging further business. He said he is seeking the ministry’s cooperation to do so. Investing $300 million to establish a new steel mill in Nigeria.
He said the investment is expected to increase the country’s steel production, reduce Nigeria’s dependence on imported specialty steel products, save scarce foreign exchange and provide associated job creation opportunities.
Also, Wale Adeniyi, CEO of Stanbic IBTC Bank, in his speech said he would support the ministry’s numerous initiatives, especially the proposed industrial park in the free trade zone and the CNG park in Ajaokuta steel belt. He assured the ministry of his readiness.
