Nigeria’s South Western region is experiencing a surge in mega investments despite the country’s economic struggles under President Bola Tinubu‘s administration.
Inner Galaxy Steel Company Limited, a Chinese firm, plans to invest $300 million in establishing a new steel plant in Ogun State to produce specialized steel products.
.
This investment aligns with President Tinubu’s economic diversification policy as part of the Renewed Hope Agenda. The company said its investment decision reflects its confidence in the president’s leadership to drive industrialization and enhance the nation’s prospects in the steel sector.
Minister of Steel Development Prince Shuaibu Audu assured the company of the Federal Government’s commitment to providing an enabling environment and fiscal incentives to support sustainable operations.
The new plant will produce plates, angles, beams, and stainless steel, among other things, and is expected to create 10,000 direct and indirect jobs. Inner Galaxy Steel Company has been operating in Nigeria for over 20 years, and its existing investments in steel production surpass $1 billion.
A Record of Poor Worker’s Treatment
However, Inner Galaxy Steel has faced criticisms for its treatment of Nigerian workers. In 2020, the Nigerian government made troubling revelations about the company’s practices, including unfair treatment of employees, poor living conditions, and excessive working hours.
The Federal Competition and Consumer Protection Commission (FCCPC) conducted an investigatory stop at the company’s location.
For example, Babatunde Irukera, FCCPC’s former Chief Executive Officer, said the agency found then that “Some employees felt restrained on-site and unable to leave, even though going home has been their preference; a workplace injury previously occurred and led to amputation with respect to an employee; employees were required to work nonstop shifts of 11 hours with inadequate breaks.”
However, FCCPC later secured commitments from the company to improve living conditions and working hours for its workers.
Despite these concerns, the investment by Inner Galaxy Steel Company in Ogun State is expected to enhance Nigeria’s steel production capacity and economy.
As Mr. Li Shuang, the company’s president, noted, the project will reduce Nigeria’s dependence on imported specialized steel, conserve foreign exchange, and generate employment opportunities.
Comment, Like 👍, share this article, and Follow us on our social media handles.
WhatsApp Channel
Telegram Channel
