A Chinese Company, Inner Galaxy Steel Company Limited, says it is investing about $300 million in the production of specialised steel products in Ogun State, Nigeria.
This was revealed following the visit of a delegation from the company to Shuaibu Audu, the minister of Steel Development,
in his office in Abuja on Wednesday.
Audu received the delegation in the company of Chris Osa Isokpunwu, the permanent secretary of the Ministry, alongside other directors and Wole Adeniyi, the chief executive officer of Stanbic IBTC Bank and his team.
The minister described the move as a welcome development, stating that it shows the group’s confidence in the leadership of President Bola Ahmed Tinubu to turn the fortunes of the nation around through the steel sector.
He assured the delegation of the federal government’s desire to create an enabling environment and provide fiscal incentives for their sustainable operation in Nigeria, noting that the ministry will review the proposal of the company and involve relevant government authorities for concessionary benefits within the current operational framework.
In his remarks, Chris Osa Isokpunwu, permamnent secretary of the ministry, lauded the new investment interest of the Chinese company, noting that the minister is keen on driving the steel revival efforts of Mr. President.
Reiterating the trust in the expertise of the Chinese, he stated that he expects Inner Galaxy Group to follow through with its promises by investing in local manufacturing and not becoming a transit point for steel importation.
Earlier, Lin Weimin, president of the Inner Galaxy Group Li, stated that the company had been in operation in Nigeria for over 20 years with current investments in steel production in excess of $1 billion and was seeking the cooperation of the ministry to facilitate a further investment of $300 million in the establishment of a new steel plant in Nigeria.
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.
Also, Wale Adeniyi, CEO of Stanbic IBTC Bank, while speaking, assured the ministry of the bank’s readiness to support the numerous initiatives of the ministry, especially the proposed industrial park at a Free-Trade Zone and CNG Park at Ajaokuta Steel Territory.
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