Nigeria’s Ministry of Steel Development has signed a joint strategic cooperation declaration with Inner Galaxy Group’s Stellar Steel Company Limited for the establishment of a $400 million modern steel plant in Ewekoro, Ogun State.
The agreement is part of ongoing efforts by the government to accelerate Nigeria’s industrialisation and become a global steel production powerhouse.
According to the Minister of Steel Development, Mr Shuaibu Abubakar Audu, the deal is also aimed at achieving self-sufficiency in steel production, the Minister of Steel Development.
The minister, who signed the declaration on behalf of the federal government at his office on Tuesday, October 28, 2025, in Abuja, said the partnership marked a major milestone in the administration’s drive to revive the steel sector and position it as a catalyst for national economic growth towards a $1 trillion economy by 2030.
Mr Audu noted that the new steel plant would be completed in phases, with the first phase scheduled to commence production by the end of 2026.
“The project will encompass a full industrial chain: from iron ore mining and smelting to steel processing and sales, positioning Nigeria as a regional hub for steel manufacturing in West Africa,” according to a statement signed by the Special Assistant (Media) to the Minister, Ms Lizzy Okoji, revealed.
He reaffirmed the federal government’s commitment to creating an enabling environment for strategic investors in the steel sector.
According to him, the project aligns with President Bola Tinubu’s Renewed Hope Agenda aimed at promoting industrial growth, reducing import dependence, and creating sustainable jobs for Nigerians.
The partnership declaration supports Nigeria’s target of producing 10 million tonnes of crude steel annually by 2030.
It is expected to help build a localised iron ore supply chain to reduce production costs and foreign exchange outflows by over $1 billion annually.
It is also expected to create over 2,000 direct and 20,000 indirect jobs, stimulating downstream industries, and promoting clean and green steel production technologies for sustainable industrial development, among others.
“The Federal Ministry of Steel Development will, under the terms of the declaration, facilitate access to fiscal incentives, infrastructure support, and regulatory frameworks that will ensure the project’s long-term viability.
“Stellar Steel, in turn, has committed to a localised recruitment and training programme in partnership with Nigerian universities and technical institutes to build local capacity in steel technology and management.
Signing on behalf of Stellar Steel Company Limited, the Group Chairman, Mr Xiaotian You, expressed readiness to deploy advanced technologies and global best practices in steel production to the steel plant, ensuring high-quality standards and compliance with environmental sustainability requirements.
“It would be recalled that the Honourable Minister in April 2025 performed the groundbreaking ceremony for the $400 million steel plant in Ewekoro, Ogun State.
“When completed, the Steel Plant is expected to serve as a benchmark for modern steel production in Nigeria, contributing significantly to national development, infrastructure growth, and job creation,” the statement noted.