Nigeria has signed a $400 million Joint Strategic Cooperation Agreement with Stellar Steel Company Limited to boost local steel production and reduce reliance on imported products.
The pact, sealed in Abuja between the Federal Ministry of Steel Development and Stellar Steel — backed by Chinese conglomerates Galaxy Group and RSIN Group — marks a new phase in the country’s industrial revitalisation drive.
Under the agreement, Stellar Steel will construct a state-of-the-art steel plant in Ewekoro, Ogun State, to be executed in three phases, with the first phase scheduled to begin production by mid-2026.
The project aims to develop a fully localised iron ore supply chain, saving Nigeria over $1 billion in foreign exchange annually.
Minister of Steel Development, Shuaibu Abubakar Audu, who signed on behalf of the Federal Government, described the deal as a major milestone in achieving Nigeria’s target of producing 10 million tonnes of crude steel yearly by 2030.
He assured that the ministry would provide policy and infrastructure support to ensure smooth implementation.
According to the minister, the project is expected to create over 2,000 direct and 20,000 indirect jobs across the steel value chain while promoting green steel production through clean, energy-efficient technologies.
The initiative is also designed to position Nigeria as West Africa’s leading steel manufacturing hub.
Audu noted that Stellar Steel would prioritise local recruitment, skills transfer, and capacity-building partnerships with Nigerian universities to strengthen technical and managerial expertise in the sector.
Stellar Steel’s President, Li Shuang, reaffirmed the company’s commitment to delivering the project within schedule and in line with global standards.
He was joined by top executives from RSIN and Inner Galaxy Group, who all pledged to support Nigeria’s quest for industrial growth and economic transformation.