Project to create 22,000 jobs, boost local iron ore production and support Nigeria’s 10-million-tonne steel target by 2030…
The Federal Government has signed a Joint Strategic Cooperation Declaration worth $400 million with Stellar Steel Company Limited to establish a state-of-the-art steel plant in Ewekoro, Ogun State, as part of efforts to revitalise Nigeria’s steel sector and promote industrial growth.
The agreement was formalised in Abuja, where the Minister of Steel Development, Shuaibu Abubakar Audu, hosted Li, President of Inner Galaxy Group, and other executives of Stellar Steel Company Limited.
According to a statement by the Ministry, the ambitious project will be executed in three phases, with the first phase expected to commence production in 2026.
Boosting Industrial Capacity and Reducing Import Dependence
Audu said the collaboration aligns with the Federal Government’s target of achieving 10 million tonnes of crude steel production annually by 2030, positioning Nigeria on the path to industrial self-reliance and economic diversification.
He explained that the Ministry would provide policy and infrastructure support to ensure the project’s success, including the inclusion of Stellar Steel’s logistics initiatives in the National Infrastructure Plan and access to fiscal incentives under the country’s industrial development framework.
Key features of the partnership include:
- Establishing a localized iron ore supply chain to cut down import dependence and save Nigeria over $1 billion annually in foreign exchange;
- Creating more than 2,000 direct and 20,000 indirect jobs across the steel value chain;
- Promoting green steel production through clean, energy-efficient technologies; and
- Strengthening Nigeria’s position as West Africa’s steel manufacturing hub.
Stellar Steel to Focus on Local Manpower Development
The Minister also revealed that Stellar Steel had committed to prioritizing local recruitment and technical training, working closely with Nigerian universities to develop skilled manpower in metallurgy, production engineering, and plant management.
“This cooperation marks a new era for Nigeria’s steel industry,” Audu said. “It demonstrates the government’s commitment to sustainable industrial growth and economic transformation.”
In his remarks, Li, leader of the Stellar Steel delegation, assured the Federal Government of the company’s commitment to timely delivery, adherence to international safety standards, and full compliance with all agreements reached under the partnership.
“We are committed to completing this project on schedule and ensuring it meets the highest standards of safety, efficiency, and quality,” Li said.
The partnership is expected to accelerate Nigeria’s drive toward becoming a key player in regional steel production, while supporting President Bola Tinubu’s Renewed Hope Industrialization Agenda.
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