An Amuwo-Based company, Inner Galaxy Steel Company Limited, is a subsidiary of Hongxing Steel Company Limited, a Chinese firm has unveiled its plans to invest $300 million in the Nigerian economy. According to the information, the investment will set up a new steel plant in Ogun State. This plant will produce specialized steel products.
Hongxing Steel Company Limited owns four other subsidiaries with interests in agriculture and oil and gas.
The announcement came from the Minister of Steel Development, Prince Shuaibu Audu. Salamatu Jibaniya, the ministry’s Head of Information and Public Relations Unit, released the statement on Thursday in Abuja. Audu noted that the investment aligns with President Bola Tinubu’s economic diversification policy under the Renewed Hope Agenda. This investment shows the company’s confidence in Tinubu’s leadership. It aims to drive industrialization and enhance the nation’s prospects through the steel sector.
Audu assured Inner Galaxy Steel of the Federal Government’s commitment to providing an enabling environment and fiscal incentives to support sustainable operations. He added that the ministry would review the company’s proposal and engage relevant authorities to explore concessionary benefits within the existing operational framework. The initiative aims to attract and facilitate foreign direct investment.
Mr. Li Shuang, President of Inner Galaxy Steel Company Limited, had previously met with Minister Audu to seek support for the $300 million investment to establish a new steel plant in Nigeria. Shuang explained that the plant would focus on producing specialized steel products, including plates, angles, beams, and stainless steel. He highlighted that this investment would significantly boost Nigeria’s steel production capacity, reduce dependence on imported specialized steel, conserve foreign exchange, and generate substantial employment opportunities.
According to Shuang, the project is expected to create approximately 10,000 direct and indirect jobs, alongside various economic multiplier effects. He also noted that Inner Galaxy Steel has been operating in Nigeria for over 20 years, with existing investments in steel production exceeding $1 billion.
The National Steel Raw Materials Exploration Agency (NSRMEA) reports that Nigeria’s steel consumption averages 10 million metric tonnes annually, with 70% of this demand met through imports. The Minister of Steel Development previously noted that the country spends approximately $4 billion each year on steel imports, despite the presence of about 74 steel plants and fabricators nationwide.
Earlier this year, Alhaji Aliko Dangote, Chairman of Dangote Industries Limited, announced plans to enter the steel production sector to meet Nigeria’s steel demand but later halted these plans due to issues with government authorities regarding his refinery.