The Federal Government of Nigeria 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, in a move aimed at revitalizing the nation’s steel sector.
The announcement was made via a statement posted on the official X (formerly Twitter) handle of the Presidency on Wednesday.
The agreement was signed on behalf of the Federal Government by the Minister of Steel Development, Prince Shuaibu Abubakar Audu. It represents a significant milestone in efforts to revive Nigeria’s long-dormant steel industry and aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda for industrialisation.
“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 presidential statement read.
“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.”
Upon completion, the Ewekoro facility is projected to produce up to 10 million tonnes of crude steel annually, positioning Nigeria as a leading regional hub for steel manufacturing in West Africa.
The plant is also expected to save the country over $1 billion in foreign exchange each year by reducing reliance on imported steel. The project promises substantial economic benefits, including the creation of more than 2,000 direct jobs and 20,000 indirect jobs.
Stellar Steel has also committed to partnering with Nigerian universities and technical institutions to train local engineers and technicians, facilitating skills development and technology transfer.
The Federal Ministry of Steel Development will offer policy guidance and infrastructural support to ensure the project’s success.
This initiative forms part of a broader government strategy to curb steel imports, conserve foreign exchange, and drive industrial diversification in pursuit of a $1 trillion economy by 2030.
The plant will incorporate clean and green production technologies, reflecting the administration’s focus on sustainable and inclusive economic growth.
