The Federal Government has signed a $400 million Strategic Cooperation Agreement with Stellar Steel Company Limited, a subsidiary of China’s Inner Galaxy Group, to establish an integrated steel plant in Ewekoro, Ogun State.
The agreement, signed by Prince Shuaibu Abubakar Audu, Minister of Steel Development, on behalf of the Federal Government, marks a major milestone in efforts to revive Nigeria’s long-dormant steel industry and strengthen the country’s industrial base.
According to a statement from the Presidency, the project aligns with President Bola Tinubu’s Renewed Hope industrialisation agenda, aimed at reducing Nigeria’s dependence on steel imports and boosting domestic production capacity.
When completed, the Ewekoro plant is expected to produce up to 10 million tonnes of crude steel annually, saving Nigeria over $1 billion in foreign exchange and positioning the country as a key steel manufacturing hub in West Africa.
The project will also create over 2,000 direct jobs and 20,000 indirect jobs, while Stellar Steel will collaborate with local universities and technical institutions to train engineers and technicians, ensuring technology transfer and skills development.
The Ministry of Steel Development will provide policy and infrastructural support for the venture, which will incorporate clean and green production technologies in line with the government’s commitment to sustainable industrial growth.
Days before the official signing, Stellar Steel had confirmed plans to invest $450 million in the Ogun plant, which will produce hot-rolled coil steel, iron doors, and gas cylinders. The facility is scheduled to commence operations by mid-2026.
During a visit to Ogun State Governor Dapo Abiodun, You Xiaotan, Vice Chairman of RSIN Group, said construction was progressing smoothly. Governor Abiodun pledged the state’s full support, citing Ogun’s partnership with Shandong Province in China and promising assistance with approvals, waivers, and tariffs.
The steel project is part of the Federal Government’s broader drive to diversify the economy, strengthen local manufacturing, and move Nigeria closer to its $1 trillion GDP target by 2030.
