NCSP Endorses $550 Million Plan to Boost Nigeria’s Steel Production

The Director-General of the Nigeria–China Strategic Partnership (NCSP), Joseph Tegbe, has expressed support for Inner Galaxy Steel Company’s $550 million expansion initiative, which aims to establish a new steel plant in Ogun State with a projected annual output of 2 million metric tons (MMT). According to IReporter Online, the announcement followed Tegbe’s visit to Inner Galaxy’s primary facility in Abia State.

Currently, the Abia plant produces around 600,000 metric tons annually, with plans to enhance capacity to 1 MMT. The Ogun facility will be developed in phases, utilising locally sourced iron ore, and is expected to play a key role in President Bola Ahmed Tinubu’s ambition of achieving 10 MMT in national steel output per year. Funding for the project will comprise $450 million from Chinese partners and financial institutions, with Nigerian partners contributing $100 million.

Tegbe also highlighted the growth of an industrial cluster surrounding Inner Galaxy’s Abia operations, including Neway Power Technology, which produces about 4 million car batteries annually, Jiu Xing Integrity Industries, a trailer fabrication and assembly firm, and Starich Recycle Technologies, a plastics recycling and manufacturing company.

Industry analysts have identified the expansion as a potential driver of foreign direct investment, technology transfer, and job creation within Nigeria’s steel value chain. According to IReporter Online, the Ogun plant could represent one of the largest single increases in steel production capacity in decades, helping to reduce import dependence and boost competitiveness in infrastructure and manufacturing markets. Tegbe noted that the investment’s impact “extends beyond steel,” reflecting broader economic and industrial benefits for Nigeria.