The Federal Government recently entered into a $400 million Strategic Cooperation Agreement with Stellar Steel Company Limited, a subsidiary of China’s Inner Galaxy Group. This deal aims to build a fully integrated steel plant in Ewekoro, Ogun State.
“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 was signed by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, on behalf of Nigeria’s government. It is intended to boost the nation’s steel sector.
“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 said. Once finished, the Ewekoro facility is expected to produce up to 10 million tonnes of crude steel annually. “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.”
When the plant becomes operational, it is projected to generate more than 2,000 direct jobs and 20,000 indirect ones. Stellar Steel has also pledged to partner with Nigerian universities and technical institutions to train engineers and technicians, promoting skills transfer and local capacity. The federal Ministry of Steel Development commits to offering policy support and infrastructure incentives to the project. The government said the agreement is part of a broader strategy to reduce Nigeria’s dependence on imported steel, preserve over $1 billion in foreign currency annually, and advance industrial diversification toward a $1 trillion economy by 2030.
The project will also adopt clean and green production technologies, reflecting a growing emphasis on sustainable industrial growth and inclusive economic development. Interestingly, before the formal signing, Stellar Steel (and its affiliates) had already been working on plans for a $450 million integrated steel plant in Ogun State. That facility is slated to manufacture hot-rolled coil steel, iron doors, and gas cylinders, and could begin operations by mid-2026, significantly cutting Nigeria’s need for imported steel.
Governor Dapo Abiodun of Ogun State reaffirmed the state’s support, noting its sister-state ties with Shandong Province in China, and promised cooperation on approvals, tariff waivers, and infrastructure assistance.
Nigeria hopes that this deal will help transition the country from a net importer of steel to a regional steel manufacturer, contribute to job creation, and strengthen its industrial backbone.
This $400 million investment promises to reduce Nigeria’s reliance on costly steel imports, preserve more than $1 billion in foreign exchange annually, and stimulate industrial growth. By fostering local production, it could shift trade balances and strengthen the economy’s resilience against global supply shocks.
