The Federal Ministry of Steel Development has signed a joint strategic cooperation declaration with Inner Galaxy Group’s Stellar Steel Company Limited to establish a $400 million modern steel plant in Ewekoro, Ogun State. This agreement is part of the government’s efforts to accelerate Nigeria’s industrialization and achieve self-sufficiency in steel production. The Minister of Steel Development, Prince Shuaibu Abubakar Audu, stated that the partnership marks a major milestone in the administration’s drive to revive the steel sector and position it as a catalyst for national economic growth.
The new steel plant, which will be completed in phases, is expected 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. The minister reaffirmed the Federal Government’s commitment to creating an enabling environment for strategic investors in the steel sector.
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 and is expected to help build a localized iron ore supply chain to reduce production costs and foreign exchange outflows by over $1 billion annually.
The agreement 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. The Federal Ministry of Steel Development will facilitate access to fiscal incentives, infrastructure support, and regulatory frameworks to ensure the project’s long-term viability. Stellar Steel has committed to a localized recruitment and training program in partnership with Nigerian universities and technical institutes to build local capacity in steel technology and management.
The Group Chairman of Stellar Steel Company Limited, 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. 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. With this agreement, Nigeria takes a significant step towards achieving its industrialization goals and becoming a major player in the regional steel industry.