THE Federal Government has entered into a $400 million agreement with Inner Galaxy Group’s Stellar Steel Company Limited to establish an integrated steel plant in Ewekoro, Ogun State — a major step toward revitalising Nigeria’s steel industry and advancing industrialisation.
According to a statement from the Ministry of Steel Development, the deal represents a joint strategic cooperation between the government and Stellar Steel, aimed at boosting local steel production and reducing Nigeria’s dependence on imports.
Minister of Steel Development, Prince Shuaibu Abubakar Audu, signed the agreement on behalf of the Federal Government in Abuja yesterday.
He described the partnership as a milestone in the government’s plan to make the steel sector a driving force for economic growth and part of Nigeria’s ambition to build a $1 trillion economy by 2030.
Audu explained that the project will be executed in phases, with the first phase expected to begin production by the end of 2026.
The facility will cover the entire industrial chain—from iron ore mining and smelting to steel processing and sales—making Nigeria a regional hub for steel manufacturing in West Africa.
He reaffirmed the Federal Government’s commitment to creating an enabling environment for investors in the steel sector, in line with President Bola Tinubu’s Renewed Hope Agenda, which prioritises industrial growth, job creation, and reduced import dependence.
The ministry stated that the partnership supports Nigeria’s goal of producing 10 million tonnes of crude steel annually by 2030, potentially saving the country over $1 billion in foreign exchange each year.
It is projected to create over 2,000 direct and 20,000 indirect jobs, strengthen local supply chains, and promote environmentally friendly steel production technologies.
Under the agreement, the Ministry of Steel Development will facilitate fiscal incentives, infrastructure support, and regulatory frameworks to ensure the project’s long-term success.
Stellar Steel, on its part, has pledged to implement a local recruitment and training programme in collaboration with Nigerian universities and technical institutes to build local expertise in steel technology and management.
Speaking at the signing, Xiaotian You, Group Chairman of Stellar Steel Company Limited, said the firm is ready to deploy advanced technologies and global best practices to ensure high-quality production that meets environmental standards.
The minister had earlier, in April 2025, performed the groundbreaking ceremony for the $400 million plant.
Once completed, the Ewekoro facility is expected to become a model for modern steel manufacturing in Nigeria—contributing to national infrastructure, industrial development, and job creation.