FG, Stellar steel sign $400m deal to boost local steel production

The federal government, through the Ministry of Steel Development, has signed a Joint Strategic Cooperation Declaration with Stellar Steel Company Limited for the construction of a $400 million steel plant in Ewekoro, Ogun State, a move aimed at revitalising Nigeria’s steel industry and reducing dependence on imported steel.

The agreement, signed in Abuja on Tuesday, is part of the federal government’s broader plan to achieve 10 million tonnes of crude steel production annually by 2030, a statement by the ministry informed.

The project to be executed in three phases, is expected to commence operations by mid-2026, the statement added.

Speaking during the signing ceremony, Shuaibu Abubakar Audu, minister of Steel Development, said the partnership demonstrates Nigeria’s commitment to sustainable industrial growth, economic diversification, and self-reliance.

“This strategic cooperation marks a new era for Nigeria’s steel industry. It aligns with our goal of positioning the country as a regional hub for steel manufacturing in West Africa,” Audu stated.

The minister explained that the Ministry would provide policy and infrastructure support for the project, including the inclusion of Stellar Steel’s logistics initiatives in the National Infrastructure Plan, as well as access to available fiscal incentives.

Under the cooperation agreement, Stellar Steel will invest $400 million in the construction of a modern steel plant, while also developing a localised iron ore supply chain aimed at reducing import dependence and saving over $1 billion in foreign exchange annually.

The partnership is also expected to create over 2,000 direct and 20,000 indirect jobs, promote green steel production using clean and energy-efficient technologies, and strengthen Nigeria’s industrial base through technology transfer and local capacity building.

Audu further disclosed that the government expects Stellar Steel to prioritize local recruitment and training, working closely with Nigerian universities to develop technical and managerial expertise in steel production.

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In his remarks, Li Shuang, president of Inner Galaxy Group and leader of the delegation, assured that Stellar Steel would ensure timely completion of the project while adhering to international safety and environmental standards.

“We are fully committed to this partnership and will work to deliver a world-class steel plant that meets global standards,” Shuang said.

He was accompanied by You Xiastian, vice chairman, RSIN Group; Jackie Den, vice president, Inner Galaxy Group; and Yin, director of RSIN Group.

Stellar Steel, backed by China’s Galaxy Group and RSIN Group based in Fuzhou, Fujian Province, is investing approximately $450 million overall in Nigeria’s steel manufacturing sector.

The company’s first plant, whose groundbreaking was performed in April 2025, is expected to catalyze the nation’s industrial transformation.

Both parties expressed optimism that the collaboration would enhance Nigeria’s steel production capacity, create jobs, and foster sustainable technology transfer within the sector.

Ruth Tene Natsa

Ruth Tene, Assistant Editor, Agric/Solid Minerals/INEC Ruth Tene is an award-winning journalist with over 15 years experience in developmental reporting across several newsrooms, as a reporter, editor and other managerial roles. She holds a Postgraduate Diploma in Journalism from the University of Maiduguri among several other certifications She has attended several trainings and certifications both locally and internationally and has been recognized for her impactful work in humanitarian reporting, receiving the Gold Award for Humanitarian Services from the Amazing Grace Foundation. She is also a recipient of the Home Alliance Fellowship, reflecting her commitment to fostering a more humane, safer and more sustainable planet. An active member of professional journalism bodies, Ruth is affiliated with the Nigeria Union of Journalists (NUJ), the National Association of Women Journalists (NAWOJ), and the Agricultural Correspondents Association of Nigeria (ACAN), where she continues to advocate for excellence, ethical reporting, and development-focused journalism.