STEELS DEVELOPMENT: Minister 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
The Honourable Minister of Steel Development, Prince Audu 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. This is as the country moves towards diversifying its economy under the Renewed Hope Agenda of the present administration.
Prince Audu while receiving the delegation in the company of the Permanent Secretary of the Ministry, Dr. Chris Osa Isokpunwu, with other Directors, alongside the Chief Executive Officer of Stanbic IBTC Bank PLC, Mr. Wole Adeniyi and his team on Wednesday, October 16, 2024, in the Ministry's Headquarters in Abuja, 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 Honourable Minister assured them of the Federal Government's support 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 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 Honourable Minister is keen on driving the steel revival efforts of Mr. President.
Dr. Isokpunwu, reiterating the trust 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, 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, Mr. 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 with a Free-Trade Zone and CNG Park at Ajaokuta Steel Territory.
