Nigeria’s long-awaited steel revolution is gathering momentum as the Federal Government has sealed a $400 million partnership with Stellar Steel Company Limited, a Chinese-backed firm, to build a state-of-the-art steel plant in Ewekoro, Ogun State.
The agreement, signed in Abuja between the Federal Ministry of Steel Development and Stellar Steel, represents one of the largest foreign direct investments in Nigeria’s steel sector in nearly a decade.
Backed by Chinese industrial giants Galaxy Group and RSIN Group, both based in Fuzhou, Fujian Province, the new steel facility is expected to begin operations by mid-2026.
According to a statement by the Ministry’s Public Information Officer, Ijomah Opia, the deal was formalized by Minister of Steel Development, Prince Shuaibu Abubakar Audu, and Mr. Li, President of Inner Galaxy Group, representing Stellar Steel.
“The Federal Ministry of Steel Development has signed a Joint Strategic Cooperation Declaration with Stellar Steel Company Limited,” the statement read. “The company has committed approximately $450 million to establish a steel plant project in Ogun State, Nigeria, scheduled to begin operations by mid-2026.”
The ministry explained that the project is designed to revitalize Nigeria’s steel industry, reduce dependency on imported steel, and strengthen the nation’s manufacturing capacity.
Job Creation and Local Impact
The partnership is projected to create over 2,000 direct and 20,000 indirect jobs across the steel value chain. It will also help localize iron ore supply, potentially saving over $1 billion in foreign exchange annually.
Minister Audu stated that the initiative aligns with the government’s target of producing 10 million tonnes of crude steel per year by 2030, supporting industrial self-reliance and economic diversification.
He assured that the Ministry will provide necessary policy and infrastructure support, including integration into the National Infrastructure Plan and access to fiscal incentives.
In return, Stellar Steel will prioritize local recruitment and training, working closely with Nigerian universities to develop technical and managerial expertise in steel manufacturing.
Environmental and Regional Benefits
The new facility will adopt green steel production technologies, using clean and energy-efficient methods to ensure environmental sustainability.
Mr. Li, who led the Stellar Steel delegation, reaffirmed the company’s commitment to completing the project on schedule while adhering to strict safety and environmental standards.
He was accompanied by Mr. You Xiastian (Vice Chairman, RSIN Group), Mr. Jackie Den (Vice President, Inner Galaxy Group), and Mr. Yin (Director, RSIN Group).
Reviving Nigeria’s Steel Dreams
Despite having vast iron ore reserves, Nigeria continues to import over $4 billion worth of steel products annually, with local output meeting less than 10% of domestic demand.
The government hopes that the Ewekoro steel plant will mark a turning point — filling the gap left by the long-dormant Ajaokuta Steel Complex and positioning Nigeria as West Africa’s steel manufacturing hub.
Minister Audu described the agreement as “a new era for Nigeria’s steel industry,” underscoring the government’s commitment to sustainable industrial growth and economic transformation.
