The Minister of Steel Development, Audu Abubakar has received a delegation of Chinese Company, Inner Galaxy Steel Company Limited who has committed to investing about $300 million to set up a new Steel Plant for the production of specialised steel products in Ogun State, Nigeria.
Audu while receiving the delegation in the company of the Permanent Secretary of the Ministry, Dr. Chris Isokpunwu, with other Directors, alongside the Chief Executive Officer of Stanbic IBTC Bank PLC, Mr. Wole Adeniyi and his team at the ministry’s headquarters in Abuja, described the move as a welcomed development.
He stated that the interest by the company in setting up a new steel plant In Nigeria, 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.
Audu, in a statement Thursday by Head, Information & Public Relations of the ministry, Salamatu Jibaniya, assured them of the federal government’s support in creating an enabling environment and providing other fiscal incentives for their sustainable operation in Nigeria.
He stressed that the ministry would 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.
On his part, Isokpunwu lauded the new investment interest of the Chinese Company, noting that the Honourable Minister is keen on driving the steel revival efforts of Mr. President.
He reiterated the trust in the expertise of the Chinese, adding that he expects the company to follow through with their promises by investing in local manufacturing and not becoming a transit point for steel importation.
Earlier, President of the Inner Galaxy Group Mr. Li said the company has been in operation in Nigeria for over 29 years with current investments in steel production in excess of $1 billion.
He revealed that the company was 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.
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.