Nigeria’s steel sector is set for a major boost as Inner Galaxy Steel Company unveils a $550 million plan to build a new plant in Ogun State, with a target output of 2 million metric tons (MMT) per year. This comes alongside upgrades at the company’s Abia State facility, which could raise its capacity from 600,000 to 1 MMT annually.
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The expansion plan—announced during a visit by Nigeria–China Strategic Partnership (NCSP) Director-General, Joseph Tegbe—will be funded with $450 million from Chinese partners and $100 million from Nigerian investors. The Ogun State project will roll out in phases and rely heavily on locally sourced iron ore, aligning with President Bola Ahmed Tinubu’s ambition to hit 10 MMT in annual national steel production.
Tegbe’s visit also spotlighted a growing industrial hub around Inner Galaxy’s Abia plant. It hosts companies like Neway Power Technology, producing 4 million car batteries yearly; Jiu Xing Integrity Industries, assembling trailers; and Starich Recycle Technologies, which turns waste plastics into new products.
Industry experts say the Ogun plant could attract more foreign investment, transfer advanced technologies, and create thousands of jobs. Once operational, it would mark one of the largest single increases in Nigeria’s steel-making capacity in decades—reducing import dependence and boosting competitiveness in construction, manufacturing, and infrastructure projects.
According to Tegbe, the investment’s impact “goes beyond steel,” helping to strengthen Nigeria’s industrial base, deepen global partnerships, and create a resilient manufacturing ecosystem that drives long-term economic transformation under the Renewed Hope Agenda.
