The Federal Government has signed a $400 million joint strategic cooperation deal with Stellar Steel Company Limited for the establishment of a state-of-the-art steel plant in Ewekoro, Ogun State.
The agreement was formalized in Abuja, with the Minister of Steel Development, Prince Shuaibu Abubakar Audu, signing on behalf of the government, while Mr. Li, President of Inner Galaxy Group, represented Stellar Steel.
In a statement issued by the ministry on Wednesday, October 29, the steel development project will be implemented in three phases, with the first phase scheduled to commence production in 2026.
Audu noted that the initiative aligns with the Federal Government’s industrialization agenda aimed at boosting domestic manufacturing capacity and reducing heavy dependence on imported steel.
He added that Nigeria is targeting an annual crude steel output of 10 million tonnes by 2030 — a milestone expected to strengthen economic diversification and industrial self-sufficiency.
“This strategic partnership reaffirms our commitment to building a stronger and more competitive steel sector that supports local industries and positions Nigeria as a key steel production hub in West Africa,” Audu said.
The minister emphasized that the project holds significant economic prospects, including job creation, technology transfer, and enhanced industrial growth.
Audu noted that the new steel plant would help establish a fully localised iron ore supply chain, significantly reducing import dependence and saving Nigeria an estimated $1 billion in foreign exchange annually. He added that the project is expected to create over 2,000 direct jobs in Ewekoro and an additional 20,000 indirect jobs across the steel production value chain.
He further stated that the facility will prioritise clean, energy-efficient technologies, positioning it among Nigeria’s first major ventures into green steel production — a move designed to boost industrial capacity while advancing environmental sustainability.
The minister explained that the Federal Government would provide strong support to the project through favourable policy initiatives and essential infrastructure. This includes incorporating Stellar Steel’s logistics projects into the National Infrastructure Plan and granting access to fiscal incentives permitted under Nigerian law.
As part of the agreement, Stellar Steel pledged to emphasise local employment and capacity building. Audu disclosed that the company will collaborate with Nigerian universities to develop both technical and managerial talent, ensuring a pipeline of skilled local professionals to drive the country’s steel industry into the future.
“This is not just about constructing a plant,” Audu said. “It is about building people, building knowledge, and building an industry that will stand the test of time. This agreement marks a new era for Nigeria’s steel sector — one focused on sustainable growth and global competitiveness.”
Stellar Steel Reaffirms Commitment
Responding, Mr. Li assured that Stellar Steel will fully honor its obligations and deliver the project within schedule, promising that the plant will meet global standards while adhering strictly to safety and environmental regulations throughout construction and operations.
“We are fully committed to seeing this project through and ensuring it is executed with the highest quality and safety benchmarks,” he stated.
Li described Nigeria as a key strategic partner and reaffirmed the company’s commitment to supporting the country’s industrialisation objectives.
Industry watchers consider the agreement a significant step toward revitalising Nigeria’s long-stalled steel ambitions. Despite decades of investment, the sector has struggled to achieve meaningful progress, with landmark projects like Ajaokuta Steel Plant yet to reach full operation.
Audu expressed confidence that the Ewekoro steel plant marks a departure from the past, signaling renewed determination to revive the industry and unlock its long-promised economic benefits.
“This project represents our commitment to transforming the steel industry into a major driver of jobs, infrastructure, and national development,” he concluded. “The era of missed opportunities is over — this marks the beginning of a new chapter for Nigeria’s industrial future.”
