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 a major integrated steel plant in Ewekoro, Ogun State.
The development, announced on the official handle of the Presidency on Wednesday, marks a significant milestone in Nigeria’s renewed drive to revive its steel industry and accelerate industrialisation under President Bola Ahmed Tinubu’s Renewed Hope Agenda.
The agreement was signed on behalf of the Federal Government by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, who described the project as a cornerstone for Nigeria’s industrial transformation and economic self-sufficiency.
According to the statement, once completed, the Ewekoro plant will have the capacity to produce up to 10 million tonnes of crude steel annually, positioning Nigeria as a regional hub for steel manufacturing in West Africa. The facility is also expected to save over $1 billion in foreign exchange every year by reducing dependence on imported steel.
Beyond production, the project is expected to generate over 2,000 direct jobs and 20,000 indirect jobs, stimulating growth across the construction, energy, and manufacturing sectors. Stellar Steel will also partner with Nigerian universities and technical institutions to train engineers and technicians, ensuring local capacity development and technology transfer.
The Federal Ministry of Steel Development will provide policy guidance and infrastructural support to facilitate the implementation of the project.
“This initiative forms part of the Federal Government’s broader efforts to reduce Nigeria’s reliance on steel imports and drive industrial diversification toward the nation’s $1 trillion economy target by 2030,” the Presidency noted.
In addition, the Ewekoro plant will incorporate clean and green production technologies, reflecting the administration’s commitment to sustainable industrial growth and inclusive economic progress.
