FG, Stellar Steel ink $450m deal to revive local steel industry
The Federal Ministry of Steel Development has signed a Joint Strategic Cooperation Declaration with Stellar Steel Company Limited to establish a $450 million steel plant in Ogun State. The initiative aims to revive Nigeria’s steel industry and reduce reliance on imported steel products.
The agreement, signed in Abuja on Tuesday, will see Stellar Steel — a Nigerian-based subsidiary backed by China’s Galaxy Group and RSIN Group — invest $400 million in constructing a modern steel plant in Ewekoro, Ogun State. The project will be executed in three phases, with the first phase expected to commence production by mid-2026.
Minister of Steel Development, Prince Shuaibu Abubakar Audu, signed the agreement on behalf of the federal government when he hosted Mr. Li, President of Inner Galaxy Group, and other officials of Stellar Steel Company Limited at the ministry’s headquarters in Abuja.
Prince Audu said the partnership aligns with the Federal Government’s goal of achieving 10 million tonnes of crude steel production annually by 2030. “This collaboration marks a new era in our journey toward industrial self-reliance and economic diversification,” he said.
He added that the ministry would provide policy and infrastructure support, including inclusion of Stellar Steel’s logistics projects in the National Infrastructure Plan and access to fiscal incentives. He also highlighted that the cooperation would promote local iron ore sourcing to save over $1 billion in foreign exchange annually.
The project is expected to create more than 2,000 direct and 20,000 indirect jobs while promoting green steel production through energy-efficient technologies. Prince Audu noted that the initiative would also strengthen Nigeria’s position as a regional steel hub in West Africa.
In return, Stellar Steel pledged to prioritize local recruitment and capacity building by partnering with Nigerian universities to develop technical and managerial expertise in steel production.
In his remarks, Mr. Li assured that Stellar Steel would complete the project on schedule while maintaining international safety and environmental standards. He was accompanied by top executives from RSIN and Inner Galaxy Groups, who reaffirmed their commitment to Nigeria’s industrial transformation.
