Steel Output: NCSP Backs $550m Inner Galaxy Expansion

Nigeria’s industrial capacity is set for a significant lift as Inner Galaxy Steel Company announced a $550 million expansion plan in Ogun State with a projected annual output of 2 million metric tons (MMT).

The announcement came during an official visit by the Director-General of the Nigeria–China Strategic Partnership (NCSP), Joseph Tegbe to Inner Galaxy’s flagship facility in Abia State. 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. The Ogun State facility will be developed in phases, utilising locally available iron ore, positioning it as a strategic contributor to President Bola Ahmed Tinubu’s goal of achieving 10 MMT in national steel production annually. The funding structure for the new project allocates $450 million from Chinese partners and Financial institution and $100 million from Nigerian partners and institution.  

The DG’s visit also highlighted the rise of a broader industrial cluster around Inner Galaxy’s Abia operations. The cluster includes 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.