From Charity Nwakaudu, Abuja
A Chinese company, “Inner Galaxy Steel Company Limited,” has expressed commitment to investing about $300 million to set up a new steel plant for the production of specialised steel products in Ogun State.
Minister of Steel Development, Prince Audu, stated this when he received a delegation from the company in Abuja.
Prince Audu noted that this is a step in the right direction as the country moves towards diversifying its economy under the Renewed Hope Agenda of the present administration.
Prince Audu described the move as a welcomed development, stating it shows the Group’s confidence in the leadership of President Bola Ahmed Tinubu to turn the fortune of the nation around through the Steel Sector.
The Minister assured the delegation of the federal government’s support in creating an enabling environment and providing other fiscal incentives for their sustainable operation in Nigeria.
He added that the Ministry will review the proposal of the company as well as involve relevant government authorities for concessionary benefits within the current operational framework so as to facilitate the proposed foreign direct investment.
In his remarks, the Permanent Secretary of the Ministry, Dr. Chris Osa Isokpunwu, lauded the new investment interest of the Chinese company, noting that the Minister is keen on driving the steel revival efforts of Mr. President.
Dr. Isokpunwu, who expressed confidence in the expertise of the Chinese, stated that he expects Inner Galaxy Group to follow through with their promises by investing in local manufacturing and not becoming a transit point for steel importation.
Earlier, the President of the Inner Galaxy Group, Mr. Li stated that the group, which has been in operation in Nigeria for over twenty years with current investments in steel production 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.
Mr. Li 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.
Also, the CEO of Stanbic IBTC Bank, Mr. Wale Adeniyi, assured the Ministry of the Bank’s readiness to support the numerous initiatives of the Ministry, especially the proposed Industrial Park with a Free-Trade Zone and CNG Park at Ajaokuta Steel Territory.