The Federal Government has signed a $400 million strategic cooperation agreement with Stellar Steel Company Limited, a subsidiary of Inner Galaxy Group, to build a modern integrated steel plant in Ewekoro, Ogun State. The move marks a major step in Nigeria’s plan to boost industrial growth and achieve self-sufficiency in steel production.
According to Mediaplusng.com, the agreement was signed by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, at his office in Abuja on Tuesday, October 28, 2025. The minister described the deal as a milestone in the government’s effort to revive the steel industry and transform it into a key driver of economic growth under President Bola Ahmed Tinubu’s Renewed Hope Agenda.
Prince Audu said the steel plant will be built in phases, with the first phase expected to begin production by the end of 2026. The facility will include a complete industrial chain — from iron ore mining and smelting to steel processing and distribution, positioning Nigeria as a major hub for steel manufacturing in West Africa.
He noted that the project aligns with the government’s broader goal of creating a $1 trillion economy by 2030, adding that it will help reduce the nation’s reliance on imported steel, save foreign exchange, and create thousands of jobs.
Under the partnership declaration, the Federal Government and Stellar Steel will work together to:
Support Nigeria’s goal of producing 10 million tonnes of crude steel annually by 2030;
Develop a local iron ore supply chain to save over $1 billion in foreign exchange yearly;
Create more than 2,000 direct and 20,000 indirect jobs across the value chain; and
Promote clean and green steel production technologies to drive sustainable industrial development.
As reported by Mediaplusng.com, the Ministry of Steel Development will help facilitate access to fiscal incentives, infrastructure, and regulatory support to ensure the project’s success. Stellar Steel, on its part, will invest in local training and recruitment programs in collaboration with Nigerian universities and technical institutes to build local expertise in steel technology and management.
Speaking during the signing ceremony, Mr Xiaotian You, Chairman of Stellar Steel Company Limited, expressed the company’s readiness to deploy advanced technologies and best global practices to ensure high-quality steel production that meets environmental standards.
It would be recalled that Prince Audu had earlier performed the groundbreaking ceremony for the steel plant in April 2025. Once completed, the facility is expected to serve as a model for modern steel production in Nigeria — strengthening infrastructure development, driving job creation, and contributing significantly to national economic growth.
Among the Chinese delegation present were Mr Li Shuang, President of Inner Galaxy Group; Mr Jackie Chen, Vice President; and Mr Yin, Director of RSIN Group.
