From Lateef Taiwo
A Chinese Firm, Inner Galaxy Steel Company Limited, has committed to setting up a new steel plant worth about $300 million for the production of specialised steel products in Ogun State, South-Western Nigeria.
The commitment was made when the Nigeria’s Minister of Steel Development, Shuaibu Abubakar Audu, Received a delegation of the company in the company of the Permanent Secretary, Dr Chris Osa Isokpunwu, with other directors, and the Chief Executive Officer, CEO, of Stanbic IBTC Bank PLC, Mr Wole Adeniyi, and his team in his office on Wednesday in Abuja, a statement from the ministry on Thursday said.
This is as the country moves towards diversifying its economy under the Renewed Hope Agenda of the present administration.
Describing the move as a welcomed development, the Minister said it reflects the group’s confidence in President Bola Ahmed Tinubu leadership’s ability to turn the fortune of the nation around through the steel sector.
Audu 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 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, FDI.
In his remarks, the Permanent Secretary of the Ministry, Dr Chris Osa Isokpunwu, affirmed his trust in the expertise of the Chinese, stated that he expects Inner Galaxy Group to keep to 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 additional 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.
Speaking, Mr Wale Adeniyi, the CEO of Stanbic IBTC Bank, 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 within Ajaokuta Steel complex in Kogi State.
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