Nigeria’s steel sector is set for a major boost as Inner Galaxy Steel Company announced plans to build a $550 million plant in Ogun State with a projected annual capacity of two million metric tonnes (MMT).
The project, unveiled during a visit by Nigeria–China Strategic Partnership Director-General Joseph Tegbe to Inner Galaxy’s Abia State facility, will be developed in phases and use locally sourced iron ore.
It is expected to significantly advance President Bola Ahmed Tinubu’s target of 10 MMT in national steel production annually.
Funding for the project will include $450 million from Chinese partners and institutions and $100 million from Nigerian sources.
Currently producing about 600,000 MMT per year in Abia, Inner Galaxy aims to raise output there to one million MMT through operational upgrades.
The expansion has also spurred the growth of an industrial cluster that includes car battery manufacturing, trailer assembly, and plastics recycling.
Analysts say the Ogun plant could become one of the largest capacity boosts in decades, cutting imports, attracting foreign investment, and strengthening Nigeria’s industrial base in line with the government’s Renewed Hope Agenda.
