The decision of a major player in the domestic steel sector in Nigeria, Inner Galaxy Steel Company, to establish a new plant in Ogun State with a projected annual output of 2 million metric tons (MMT) has been applauded by the Nigeria–China Strategic Partnership (NCSP).
The director-general of the agency, Mr Joseph Tegbe, said he was impressed that the Abia State-based organisation to invest such an amount in Ogun State.
The funding structure for the new project allocates $450 million from Chinese partners and financial institution and $100 million from Nigerian partners and institutions.
The Ogun State facility will be developed in phases, utilising locally available iron ore, positioning it as a strategic contributor to the government’s goal of achieving 10 MMT in national steel production annually.
According to him, the significance of this investment “extends beyond steel,” noting it is about fortifying Nigeria’s industrial base, deepening partnerships with global investors, and building a manufacturing ecosystem capable of driving long-term economic transformation.
Currently producing about 600,000 metric tons annually, the company believes operational enhancements could lift capacity at the Abia site to 1 MMT per year.
Mr Tegbe, who visited the factory of Inner Galaxy in Abia State on July 30, 2025, had a tour of the facility’s operations, including Neway Power Technology Company Ltd, which manufactures roughly 4 million car batteries annually; Jiu Xing Integrity Industries Limited, which fabricates and assembles trailers from CKD and SKD kits; and Starich Recycle Technologies Company Limited, a plastics recycler and manufacturer.
Industry analysts see the Inner Galaxy expansion as a potential catalyst for foreign direct investment inflows, advanced technology transfer, and large-scale job creation within Nigeria’s steel value chain.
If delivered on schedule, the Ogun State plant would represent one of the single largest boosts to Nigeria’s steel capacity in decades, helping to close the domestic supply gap, reduce reliance on imports, and strengthen competitiveness in regional infrastructure and manufacturing markets.