The Federal Government has signed a landmark $400 million joint strategic cooperation agreement with Stellar Steel Company Limited to establish a state-of-the-art steel plant in Ewekoro, Ogun State, in a move aimed at boosting Nigeria’s industrial base and reducing reliance on imported steel.
The agreement was formalised at the Federal Ministry of Steel Development headquarters in Abuja, where the Minister of Steel Development, Prince Shuaibu Abubakar Audu, hosted the President of Inner Galaxy Group, Mr. Li, and other top executives of Stellar Steel Company Limited.
According to a statement from the ministry, the project will be executed in three phases, with the first phase expected to commence production by 2026. The initiative marks a major step in Nigeria’s ongoing efforts to revive its steel sector and position itself as a regional industrial powerhouse.
Prince Audu explained that the partnership aligns with the Federal Government’s target of achieving 10 million tonnes of crude steel production per annum by 2030, under President Bola Ahmed Tinubu’s broader vision for economic diversification and industrial self-sufficiency.
He stated that the Ministry would provide full policy and infrastructure support to ensure the success of the project, including the inclusion of Stellar Steel’s logistics and infrastructure needs in the National Infrastructure Plan and access to available fiscal incentives.
Audu noted that one of the key highlights of the cooperation is the development of a localized iron ore supply chain, which will help reduce Nigeria’s dependence on steel imports and save over $1 billion in foreign exchange annually. The initiative is also expected to create more than 2,000 direct jobs and 20,000 indirect jobs across the steel value chain once fully operational.
“The collaboration will promote green steel production by adopting clean and energy-efficient technologies,” the Minister said. “This will not only improve productivity but also position Nigeria as a key steel manufacturing hub in West Africa.”
He added that the government’s support for such large-scale industrial partnerships reflects its commitment to building a sustainable, inclusive, and self-reliant economy. According to him, the new steel plant would help Nigeria reduce import bills, develop local talent, and accelerate industrialization through downstream manufacturing.
Prince Audu also revealed that the Ministry will work closely with Stellar Steel to ensure local content participation. “In return, Stellar Steel has committed to prioritizing local recruitment and training. The company will also partner with Nigerian universities and technical institutes to develop a skilled workforce in steel engineering and management,” he said.
The Minister described the project as “a defining moment for Nigeria’s steel industry,” adding that it represents “a new era of strategic industrial cooperation that will stimulate growth, innovation, and competitiveness.”
In his remarks, Mr. Li, President of Inner Galaxy Group and leader of the Stellar Steel delegation, expressed his appreciation to the Nigerian government for its support and trust. He assured that Stellar Steel Company Limited would adhere strictly to all terms of the agreement and deliver the project within record time.
“We are fully committed to ensuring this project becomes a model of industrial partnership in Africa,” Mr. Li stated. “We will also comply with international safety and environmental standards while ensuring local communities benefit from employment and social development.”
The new steel plant is expected to contribute significantly to Nigeria’s industrial infrastructure, supplying raw materials for construction, manufacturing, and automobile production. Analysts believe the partnership could serve as a catalyst for other private sector-led investments in Nigeria’s heavy industry and mining sectors.
With abundant iron ore deposits in Kogi, Niger, and other parts of the country, experts have long argued that Nigeria has the resources to become a major steel producer in Africa. However, years of underinvestment and policy inconsistency have hindered progress. The new collaboration between the Ministry and Stellar Steel is therefore seen as a critical step toward reviving the long-dormant sector.
If fully realized, the Ewekoro Steel Plant will not only boost Nigeria’s steel output but also reduce import dependency, enhance export potential, and create sustainable jobs that will support local economies. The project will further contribute to achieving the federal government’s vision of industrializing Nigeria through strategic partnerships, technology transfer, and private sector participation.
