The Federal Government, through the Federal Ministry of Steel Development, has entered into a $400 million Joint Strategic Cooperation Declaration with Stellar Steel Company Limited for the construction of a modern steel plant in Ewekoro, Ogun State.
The agreement, Naija News understands, was signed in Abuja by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, and the President of Inner Galaxy Group, Mr. Li, who led a delegation of Stellar Steel officials to the ministry’s headquarters.
According to the statement released by the ministry on Wednesday, October 29, the project will be executed in three phases, with the first phase expected to begin production by 2026.
Speaking during the ceremony, Audu explained that the partnership was in line with the Federal Government’s vision to expand the nation’s industrial base and reduce reliance on imports.
He noted that Nigeria’s long-term target is to achieve 10 million tonnes of crude steel annually by 2030, a goal that, in his view, represents a major step toward economic diversification and industrial self-reliance.
“This strategic cooperation underscores our commitment to building a steel sector that does not only serve local industries but also positions Nigeria as a regional hub for steel manufacturing across West Africa,” the minister stated.
Audu stressed that the project carried far-reaching economic implications.
He said the new steel plant would support the development of a localised iron ore supply chain, cutting down dependence on imports and saving the country an estimated $1 billion in foreign exchange each year. He added that the facility would generate more than 2,000 direct jobs in Ewekoro and about 20,000 indirect jobs along the steel value chain.
According to him, the initiative would also prioritise the use of clean and energy-efficient technologies, making it one of Nigeria’s first large-scale ventures into green steel production. The minister maintained that this approach would not only boost industrial output but also promote environmental sustainability.
He explained that the government, through the ministry, would play a supportive role by facilitating policy measures and infrastructure backing, including ensuring that Stellar Steel’s logistics projects are captured in the National Infrastructure Plan and granting access to fiscal incentives available under Nigerian law.
In return, Stellar Steel has committed to prioritising local recruitment and training as part of the agreement. Audu revealed that the company would work closely with Nigerian universities to build both technical and managerial expertise, thereby ensuring that the country develops its own pool of skilled professionals in steel production.
“This is not just about building a plant. It is about building people, knowledge, and an industry that can outlive its pioneers. This agreement signals a new era for Nigeria’s steel industry,” Audu said, adding that the cooperation represents the government’s resolve to reposition the sector as a driver of long-term growth and transformation.
Stellar Steel’s Assurance
In his response, Mr. Li assured the minister that Stellar Steel would honour all terms of the agreement and deliver the plant within record time. He pledged that the project would meet international standards and that the company would strictly observe environmental and safety protocols during both the construction and production phases.
“We are determined to see this project through to completion, and we will ensure that it is done with the highest safety and quality standards,” Li said.
He emphasised that Stellar Steel viewed Nigeria as a key strategic partner and that the company was committed to supporting the country’s industrialisation agenda.
The signing of the agreement is being seen as a potential turning point for Nigeria’s troubled steel sector, which has struggled for decades to live up to its potential despite huge investments.
For Audu, the Ewekoro plant is proof that Nigeria can finally move beyond abandoned projects and stalled initiatives, such as Ajaokuta, and embrace a new chapter in its industrial journey.
“This cooperation demonstrates our seriousness in transforming the steel industry into a sustainable driver of jobs, infrastructure and economic development. The era of missed opportunities must end. This project is a symbol of what we intend to achieve in the years ahead,” the minister concluded.
𝗙𝗼𝗹𝗹𝗼𝘄 𝗢𝘂𝗿 𝗪𝗵𝗮𝘁𝘀𝗔𝗽𝗽 𝗖𝗵𝗮𝗻𝗻𝗲𝗹 𝗧𝗼 𝗚𝗲𝘁 𝗟𝗮𝘁𝗲𝘀𝘁 𝗡𝗲𝘄𝘀 𝗔𝘀 𝗜𝘁'𝘀 𝗗𝗿𝗼𝗽!
