FG, Company Sign $400m Agreement to Boost Nigeria’s Steel Industry

In a move to boost and modernize Nigeria’s steel production, the Federal Ministry of Steel Development has signed a $400 million Joint Strategic Cooperation Declaration with Stellar Steel Company Limited for the construction of a state-of-the-art steel plant in Ewekoro, Ogun State.

The Ministry, in a statement, explained that the project will be executed in three phases, with the first phase expected to commence production by 2026. The Minister of Steel Development, Prince Shuaibu Abubakar Audu, signed the agreement during a meeting with Mr. Li, President of Inner Galaxy Group, and other executives of Stellar Steel Company Limited at the Ministry’s headquarters in Abuja.

According to the Minister, the partnership supports the Federal Government’s target of producing 10 million tonnes of crude steel annually by 2030 — a milestone toward achieving industrial self-sufficiency and diversifying the nation’s economy.

He noted that the Ministry will provide policy and infrastructure support, including integrating Stellar Steel’s logistics projects into the National Infrastructure Plan and ensuring access to available fiscal incentives.

Key highlights of the collaboration include the development of a local iron ore supply chain to reduce import dependence and save over $1 billion in foreign exchange yearly, the creation of over 2,000 direct and 20,000 indirect jobs, the promotion of green steel production through energy-efficient technologies, and the strengthening of Nigeria’s position as West Africa’s steel manufacturing hub.

Audu added that Stellar Steel will prioritize local employment and capacity building by partnering with Nigerian universities to develop technical and managerial expertise in the steel industry.

He described the partnership as a significant milestone that signals a new era for Nigeria’s steel sector and reaffirms the government’s commitment to sustainable industrialization and economic growth.

In his remarks, Mr. Li assured that Stellar Steel Company Limited would uphold all terms of the agreement, ensure timely project completion, and adhere to the highest safety and operational standards.