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 forms part of the government’s effort to accelerate Nigeria’s industrialisation and achieve self‑sufficiency in steel production.
Minister of Steel Development Prince Shuaibu Abubakar Audu said 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 plant will be built in phases and is expected to begin production by the end of 2026. It 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,” which aims to promote industrial growth, reduce import dependence and create sustainable jobs for Nigerians. It supports the national target of producing 10 million tonnes of crude steel annually by 2030 and is expected to help build a localized iron‑ore supply chain, reducing production costs and foreign‑exchange outflows by more than $1 billion each year.
The agreement is projected to generate over 2 000 direct and 20 000 indirect jobs, stimulate downstream industries and promote clean, 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 programme in partnership with Nigerian universities and technical institutes to build local capacity in steel technology and management. Group Chairman Xiaotian You expressed readiness to deploy advanced technologies and global best practices at the 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 toward achieving its industrialisation goals and becoming a major player in the regional steel industry.
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