The Federal Government of Nigeria has signed a $400 million Joint Strategic Cooperation Agreement with Stellar Steel Company Limited to boost domestic steel production and reduce the country’s heavy reliance on steel imports.
The agreement was signed by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, at the Ministry’s headquarters in Abuja on Tuesday, October 28, 2025. The investment will facilitate the construction of a modern steel plant in Ewekoro, Ogun State, scheduled to begin operations in mid-2026.
Stellar Steel, backed by Chinese industrial giants Inner Galaxy Group and RSIN Group based in Fujian Province, China, has committed over $450 million in total investment toward the project. The steel plant will be developed in three phases and is expected to contribute significantly to Nigeria’s industrialisation agenda.
Prince Audu said the deal aligns with President Bola Ahmed Tinubu’s economic expansion strategy and the Federal Government’s target of producing 10 million tonnes of crude steel annually by 2030.
“This partnership marks a new era for Nigeria’s steel sector. It will strengthen our industrial base, create massive job opportunities, and drive economic diversification,” the Minister said.
He also confirmed that the Federal Ministry of Steel Development will provide policy support, infrastructure access, and incentives, including incorporating Stellar Steel’s logistics projects into the National Infrastructure Plan.
Key Highlights of the Agreement Include:
Development of a local iron ore supply chain to cut steel imports and save over $1 billion in foreign exchange annually.
Creation of 2,000 direct and 20,000 indirect jobs across the steel value chain.
Adoption of green steel technology with energy-efficient production.
Strengthening Nigeria’s role as a steel production hub in West Africa.
Capacity-building partnerships with Nigerian universities for technical training and workforce development.
Mr. Li, President of Inner Galaxy Group and leader of the Stellar Steel delegation, assured the Federal Government of the company’s commitment to project delivery and international safety standards.
“Stellar Steel will deliver this project on schedule. We are committed to local content development and long-term industrial partnership with Nigeria,” he noted.
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He was accompanied by top executives including Mr. You Xiastian, Vice Chairman of RSIN Group, Mr. Jackie Den, Vice President of Inner Galaxy Group, and Mr. Yin, Director of RSIN Group.
The Minister had previously performed the groundbreaking ceremony for the steel plant in April 2025. Both parties said the deal would accelerate technology transfer, reduce import dependence, and support Nigeria’s quest for economic self-reliance.
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