FG Perfects $400m Deal With Stellar Steel To Boost Local Steel Production
The Federal Government has signed a $400 million Strategic Cooperation Agreement with Stellar Steel Company Limited, a subsidiary of China’s Inner Galaxy Group, to establish an integrated steel plant in Ewekoro, Ogun State. The agreement, signed by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, marks a major step toward reviving Nigeria’s steel industry and advancing President Bola Ahmed Tinubu’s Renewed Hope industrialisation agenda. The project is one of the largest single foreign direct investments in Nigeria’s manufacturing sector in recent years, reflecting renewed global confidence in the country’s reform-driven economy.
The initiative aims to build a fully integrated steel value chain that spans iron ore mining, smelting, processing, and sales, significantly reducing Nigeria’s reliance on imported steel. When operational in phases by 2026, the plant is expected to generate over 2,000 direct jobs and 20,000 indirect jobs, positioning Nigeria as a regional hub for steel manufacturing in West Africa. The Ministry of Steel Development will provide policy and infrastructural support, while Stellar Steel will collaborate with Nigerian universities and technical institutions to train local engineers and technicians, ensuring knowledge transfer and skills development.
This investment aligns with the Federal Government’s goal of achieving a $1 trillion economy by 2030 through industrial diversification and sustainable infrastructure growth. Once completed, the Ewekoro plant will enable Nigeria to produce up to 10 million tonnes of crude steel annually, saving over $1 billion in foreign exchange each year. The project’s adoption of clean and green production technologies underscores the Tinubu administration’s commitment to sustainable industrial growth, local value addition, and inclusive economic progress across the nation.
