The Federal Government on Wednesday, signed a $400 million cooperation agreement with Stellar Steel Company Limited, a Chinese-backed firm, to establish a major steel plant in Ewekoro, Ogun State.
The deal was signed in Abuja between the Federal Ministry of Steel Development and Stellar Steel.
The development would mark one of the biggest foreign direct investment commitments in Nigeria’s steel sector in nearly a decade.
Backed by Chinese parent groups Galaxy Group and RSIN Group, both headquartered in Fuzhou, Fujian Province, the new plant is expected to commence operations by mid-2026.
In a statement issued by the ministry’s Public Information Officer, Ijomah Opia, it stated that the agreement was signed by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, and the President of Inner Galaxy Group, Mr Li, on behalf of Stellar Steel.
The statement read, “The Federal Ministry of Steel Development has signed a Joint Strategic Cooperation Declaration with Stellar Steel Company Limited. Stellar Steel Company Limited is a steel-manufacturing enterprise established to operate in Nigeria, with major investment backing from Chinese parent groups: Galaxy Group and RSIN Group based in Fuzhou, Fujian Province, China.
“The company has committed approximately US$450 million for a steel plant project in Ogun State, Nigeria, scheduled to begin operations by mid-2026. This landmark partnership is aimed at revitalising Nigeria’s steel industry and reducing the nation’s dependence on imported steel products.”
The statement further revealed that the Minister of Steel Development, Abubakar Audu signed the agreement when he hosted Mr Li, President of Inner Galaxy Group and other members of the Stellar Steel Company Limited in the Ministry’s Headquarters in Abuja.
According to the minister, the collaboration aligns with the Federal Government’s goal of achieving 10 million tonnes of crude steel production per annum by 2030, a major step toward industrial self-reliance and economic diversification.
He added that the Federal Ministry of Steel Development will facilitate policy and infrastructure support, including the inclusion of Stellar Steel’s logistics projects in the National Infrastructure Plan and access to available fiscal incentives.
According to the statement, the agreement will facilitate Development of a localised iron ore supply chain to reduce import dependence and save over $1bn in foreign exchange annually.
“Creation of more than 2,000 direct and 20,000 indirect jobs across the steel value chain. Promotion of green steel production using clean and energy-efficient technologies and strengthening Nigeria’s position as a regional steel manufacturing hub in West Africa”, it stated.
Audu also stated that in return, Stellar Steel will prioritise local recruitment and training, partnering with Nigerian universities to build technical and managerial expertise in steel production.
In his remark, Shuaibu said the strategic cooperation marks a new era for Nigeria’s steel industry and demonstrates the government’s commitment to sustainable industrial growth and economic transformation.
Responding, the leader of the delegation, Mr Li, assured the minister that Stellar Steel Company Limited will respect all agreements reached and will ensure the completion of the project in record time and assured that all safety standards will be observed.
Both parties reaffirmed that the partnership would strengthen Nigeria’s industrial base, create jobs, and promote technology transfer across the steel ecosystem.
