The Federal Government has moved to cut Nigeria’s $4 billion yearly steel import bill with the groundbreaking of the $400 million Stellar Steel Plant owned by Inner Galaxy Group. The plant, located in Ogun State, is seen as a major step towards reviving Nigeria’s steel sector and reducing heavy reliance on imported steel.
The Minister of Steel Development, Prince Shuaibu Audu, led the groundbreaking ceremony, stressing that the project will help grow the economy and create jobs for Nigerians. This was contained in a statement signed by the Principal Information Officer, Ijomah Opia, on Thursday.
Sitting on more than 100 hectares of land, the new Stellar Steel Plant will focus on producing hot-rolled coil, a critical material used across industries such as construction, automobile production, and manufacturing. This move is expected to drastically reduce the amount of steel Nigeria imports, helping to save foreign exchange and shift the economy’s focus away from oil and gas.
Speaking at the event, Prince Audu said the project will directly and indirectly create over 3,500 jobs for Nigerians. He added that this forms part of President Bola Tinubu’s Renewed Hope Agenda to grow the economy and achieve sustainable development.
“This groundbreaking represents a crucial milestone in our journey to revive Nigeria’s steel industry,” the minister said. “Once completed, the Stellar Steel Plant will reduce our reliance on foreign steel, conserve foreign exchange, and position Nigeria as a key player in the regional and global steel market.”
Audu stressed that the government remains fully committed to encouraging investors in the steel sector through policies that promote local production and create a friendly business environment. He noted that strengthening the steel sector is important if Nigeria hopes to achieve its dream of building a $1 trillion economy by 2030.
The minister pointed out that the groundbreaking event comes shortly after the commissioning of the African Industries Group’s Galvanised Steel Plant in Lagos, which has an estimated annual turnover of $100 million. Both events, he explained, were part of his one-week working visit to Lagos and Ogun states to engage private sector players and boost activities in the steel industry.
“As you are aware, President Bola Ahmed Tinubu is known for putting together strong teams. His goal is to select the best leaders to bring his vision to life,” Audu added.
Prince Audu expressed strong belief in Inner Galaxy Group’s ability to deliver on the project. He said the group has proven itself in the Nigerian industrial sector, having already built the largest lithium factory in Nasarawa State and a $150 million battery-recycling facility in Aba, Abia State.
“I have personally come to support the Inner Galaxy Group and the Stellar Steel team on this $400 million investment. It is a very impressive project. I look forward to commissioning this plant by April 2026, God willing,” the minister said.
He emphasized that steel is the backbone of industrial development, pointing out that industries like roads construction, power generation, defence, and manufacturing all depend heavily on steel. He also praised the public-private partnership approach that made the Stellar Steel project possible, saying such collaborations are needed if Nigeria is to compete effectively in Africa and the world.
Also speaking at the event, the Vice President of Inner Galaxy Group, Mr. Jackie Shan, who interpreted for the Chairman, Mr. Li Chuang, expressed gratitude to the Ministry of Steel Development for its efforts in reviving the country’s steel sector. Shan said the company is determined to deliver a world-class steel plant that will meet Nigeria’s industrial needs.
