Nigeria’s industrial sector is poised for a major leap forward as Inner Galaxy Steel Company, one of the country’s leading steel manufacturers, unveils an ambitious $550 million expansion plan to establish a new state-of-the-art steel plant in Ogun State. The project, backed by the Nigeria–China Strategic Partnership (NCSP), aims to deliver an annual production capacity of two million metric tons (MMT) and significantly close the nation’s steel supply gap.
The announcement came during a high-level visit by NCSP Director-General, Joseph Tegbe, to Inner Galaxy’s flagship steel facility in Abia State. Tegbe reaffirmed the NCSP’s commitment to supporting large-scale industrial projects that align with Nigeria’s long-term economic diversification goals.
Currently, Inner Galaxy produces around 600,000 metric tons of steel annually at its Abia State plant. With ongoing operational enhancements, the company projects an increase to 1 MMT per year at the site. The planned Ogun facility—strategically located for access to key markets and raw materials—will be developed in phases, utilising locally sourced iron ore to reduce import dependency.
The expansion is part of President Bola Ahmed Tinubu’s industrial roadmap, which targets 10 MMT of domestic steel production annually to support infrastructure, housing, manufacturing, and automotive sectors.
The $550 million investment will be funded through a joint financing model:
$450 million from Chinese strategic partners and international financial institutions.
$100 million from Nigerian investors, including local banks and development funds.
This blend of foreign and local capital is expected to strengthen Nigeria’s position as a preferred destination for Foreign Direct Investment (FDI) in heavy industry.
Inner Galaxy’s Abia plant has already fostered a growing industrial cluster, including:
Neway Power Technology Company Ltd – producing approximately four million car batteries annually.
Jiu Xing Integrity Industries Ltd – assembling trailers from CKD and SKD kits.
Starich Recycle Technologies Ltd – specialising in plastics recycling and manufacturing.
Analysts believe the Ogun plant will further deepen this ecosystem by attracting downstream manufacturers, creating thousands of jobs, and accelerating technology transfer in Nigeria’s steel value chain.
If completed on schedule, the Ogun facility will mark one of the largest single increases in steel production capacity in Nigeria’s history. The benefits are expected to include:
Import substitution – reducing Nigeria’s dependence on foreign steel.
Price stability – easing pressure on the construction and manufacturing sectors.
Regional competitiveness – positioning Nigeria as a key steel exporter within West Africa.
Speaking on the broader implications, Tegbe emphasised:
“This investment extends beyond steel. It represents a firm step towards building a self-reliant industrial base, strengthening Nigeria’s position in global manufacturing, and delivering the economic transformation outlined in President Tinubu’s Renewed Hope Agenda.”
While industry stakeholders are optimistic, they point to potential challenges, including:
Ensuring uninterrupted power supply to the new facility.
Addressing infrastructure bottlenecks in transport and logistics.
Maintaining a stable policy environment to safeguard investor confidence.
However, with NCSP’s strategic oversight and strong bilateral cooperation between Nigeria and China, experts believe these risks can be mitigated, paving the way for a transformative leap in Nigeria’s steel production capacity.