The Federal Government has signed a $400 million Strategic Cooperation Agreement with Stellar Steel Company Limited, a subsidiary of China’s Inner Galaxy Group, to establish an integrated steel plant in Ewekoro, Ogun State.
The announcement was contained in a statement posted on the Official Handle of the Presidency of the Federal Republic of Nigeria on Wednesday.
The agreement, signed by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, on behalf of the Federal Government of Nigeria, marks a major step toward reviving Nigeria’s steel industry.
Once completed, the Ewekoro plant will enable Nigeria to produce up to 10 million tonnes of crude steel annually, positioning the country as a key regional hub for steel manufacturing in West Africa.
“The Federal Government has signed a $400 million Strategic Cooperation Agreement with Stellar Steel Company Limited, a subsidiary of China’s Inner Galaxy Group, to establish an integrated steel plant in Ewekoro, Ogun State.
“The agreement, signed by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, marks a major step toward reviving Nigeria’s steel industry and advancing President Bola Ahmed Tinubu’s Renewed Hope industrialisation agenda,” the statement read in part.
It added, “Once completed, the Ewekoro plant will enable Nigeria to produce up to 10 million tonnes of crude steel annually, saving over $1 billion in foreign exchange each year.”
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When operational, the plant is expected to create over 2,000 direct jobs and 20,000 indirect jobs, while Stellar Steel plans to collaborate with Nigerian universities and technical institutions to train engineers and technicians, ensuring local skills development and knowledge transfer.
- The Federal Ministry of Steel Development will provide policy and infrastructural support to the project.
- The statement noted that the initiative is part of the Federal Government’s broader effort to reduce Nigeria’s reliance on imported steel, save over $1 billion in foreign exchange annually, and advance industrial diversification toward the nation’s $1 trillion economy target by 2030.
The project will also incorporate clean and green production technologies, reflecting the administration’s commitment to sustainable industrial growth and inclusive economic progress.
What you should know
Days before the official announcement of the $400 million agreement with the Federal Government, Stellar Steel Company Limited, a subsidiary of China’s Galaxy Group and RSIN Group, was already moving forward with plans to establish a $450 million integrated steel plant in Ogun State.
Governor Abiodun highlighted the state’s sister-state agreement with Shandong Province and assured Stellar Steel of government support, including streamlined approvals and assistance with waivers or tariffs.