The Federal Government of Nigeria 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, in a move aimed at revitalizing the nation’s long-dormant steel sector.
The development was announced in a statement released on Wednesday via the official X (formerly Twitter) handle of the Presidency.
According to the statement, the agreement was signed on behalf of the Federal Government by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, marking a significant milestone in President Bola Ahmed Tinubu’s Renewed Hope Agenda, which seeks to promote industrialisation and economic diversification.
The project, when completed, is expected to produce up to 10 million tonnes of crude steel annually, positioning Nigeria as a leading hub for steel manufacturing in West Africa. It will also help the country save over $1 billion in foreign exchange each year by reducing dependence on imported steel.
Beyond its economic significance, the new plant is projected to create more than 2,000 direct jobs and an estimated 20,000 indirect employment opportunities, boosting local capacity and economic activity within the region.
Stellar Steel has also pledged to collaborate with Nigerian universities and technical institutions to train local engineers and technicians, ensuring technology transfer and sustainable skills development.
The Federal Ministry of Steel Development will provide policy guidance and infrastructural support to guarantee the project’s success.
This initiative forms part of the government’s broader strategy to curb steel imports, conserve foreign exchange, and drive industrial diversification in pursuit of achieving a $1 trillion economy by 2030.
In line with global trends, the Ewekoro steel plant will incorporate clean and green production technologies, reflecting the Tinubu administration’s commitment to sustainable and inclusive economic growth.
