After Dangote suspends investment, Chinese company announces interest in Steel

• Inner Galaxy Steel Company Limited, a Chinese business, plans to construct a new steel complex with an investment of $300 million
• The minister of steel development said the investment aligns with the economic diversification policy of President Bola Tinubu's Renewed Hope Agenda
• The minister assured the company that sustainable operations would be supported by the federal government

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

A Chinese company called Inner Galaxy Steel Company Limited intends to invest $300 million to build a new steel facility in Ogun State that will manufacture specialty steel products.

The investment is in line with President Bola Tinubu's Renewed Hope Agenda economic diversification program. Photo Credit: Kriangkrai Thitimakorn
Source: Getty Images

Prince Shuaibu Audu, the Minister of Steel Development, made this revelation in a statement issued Thursday in Abuja by Salamatu Jibaniya, the Head of the Ministry's Information and Public Relations Unit.

According to Audu, the investment is in line with President Bola Tinubu's Renewed Hope Agenda economic diversification program, demonstrating the company's faith in Tinubu's ability to lead industrialisation and improve the country's prospects through the steel industry.

The Guardian reported that the minister gave the business the assurance that the Federal Government would support sustainable operations by offering financial incentives and an enabling environment.

He emphasised that the goal of this program is to draw in and facilitate foreign direct investment, adding that the ministry would examine the company's request and consult with the appropriate authorities to investigate concessionary benefits within the current operational framework.

In order to get the ministry's backing for a $300 million investment to build a new steel plant in Nigeria, Li Shuang, President of Inner Galaxy Steel Company Limited, had previously visited with Prince Shuaibu Audu, minister of steel development.

According to Shuang, the plant would concentrate on manufacturing speciality steel products, such as stainless steel, plates, angles, and beams. He emphasised that the investment would increase Nigeria's capacity to produce steel, lessen reliance on imported speciality steel, preserve foreign exchange, and create jobs.

In addition to other economic multiplier effects, Shuang estimates that the project will generate 10,000 direct and indirect jobs. The company has been in business in Nigeria for more than 20 years, he added, and it currently has over $1 billion invested in steel production.

India’s steel company to leave Nigeria amid economic hardships

Legit.ng reported that Indian steel manufacturer Aarti is quitting Nigeria's manufacturing sector, joining a lengthy list of corporations that have left the nation due to economic hardships.

BusinessDay has reported that large parties have already placed tentative bids ranging from $50 million to $100 million for the Ota, Ogun State-based steel manufacturer, which has previously been put up for sale.

Following Microsoft Nigeria, Total Energies Nigeria, PZ Cussons Nigeria PLC, Kimberly-Clark Nigeria, and Diageo PLC out of the most populous country in Africa, this will make it the sixth giant business to leave Nigeria in the first half of 2024.

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Source: Legit.ng