Minister of Steel Development Receives President of Chinese Company, Inner Galaxy Steel Group and Chief Executive, Stanbic IBTC Bank PLC
…..as Steel Company Commits $300 million to New Steel Plant in Nigeria
Chinese company Inner Galaxy Steel Company Limited has committed to investing $300 million in the establishment of a new steel plant for the production of specialised steel products in Ogun State, Nigeria as the country moves towards diversifying its economy under the Renewed Hope Agenda of President Bola Ahmed Tinubu GCFR.
The President of the Inner Galaxy Group, Mr. Li Shuang, made this known during a courtesy visit to the Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu, alongside the Chief Executive Officer of Stanbic IBTC Bank PLC, Mr. Wole Adeniyi and his team on Wednesday, October 16, 2024, in the Minister’s office in Abuja.
Mr. Li stated that Inner Galaxy, which has been in operation in Nigeria for over twenty years with current investments in Steel production in Nigeria in excess of $1 billion is seeking the cooperation of the Ministry to facilitate a further investment of $300 million for the establishment of a new steel plant in Nigeria for the production of specialised steel products like plates, angles, beams, and stainless products amongst others.
He noted that the investment is expected to increase the steel production output of the country, reduce Nigeria’s reliance on imported specialised steel products and conserve scarce foreign exchange with attendant employment generation opportunities—both direct and indirect employment estimated at about 10,000 with other multiplier effects in the economy.
The Honourable Minister of Steel Development, Prince Audu who received the delegation in company of the Permanent Secretary, Dr. Chris Osa Isokpunwu, and other directors, described the move as a welcomed development, while appreciating the group for their confidence in the Renewed Hope Agenda of President Bola Ahmed Tinubu GCFR.
Prince Audu assured them of the full support of the Federal Government in creating an enabling environment and providing other fiscal incentives for their sustainable operation in Nigeria, adding that the Ministry will review the proposal of the company accordingly and also involve relevant government authorities for concessionary benefits within the current operational framework of government so as to facilitate the proposed foreign direct investment.
Dr. Chris Osa Isokpunwu, Permanent Secretary of the Ministry, lauded the new investment interest of the Chinese company, stating that the Honourable Minister is keen on driving the steel revival efforts of Mr. President.
Dr. Isokpunwu, reiterating the trust in the expertise of the Chinese, says he expects the Inner Galaxy Group to follow through with their promises by investing in local manufacturing and not becoming a transit point for steel importation.
Mr. Wale Adeniyi, CEO of Stanbic IBTC Bank, also assured the Ministry of the readiness of the Bank to support the numerous good initiatives of the Ministry, especially the proposed Industrial Park with a Free-Trade Zone and CNG Park at Ajaokuta Steel Territory.
Lizzy Okoji
Special Assistant Media to the Honorable Minister of Steel Development
Prince Shuaibu Abubakar Audu
October 17, 2024
