FG, Firm Sign $400 Million Deal To Build Integrated Steel Plant In Ogun

The Federal Ministry of Steel Development has signed a $400 million partnership with Stellar Steel Company Limited, a subsidiary of Inner Galaxy Group, to build a modern steel plant in Ewekoro, Ogun State.

The Minister of Steel Development, Prince Shuaibu Abubakar Audu, said the agreement is a key step in the government’s plan to boost industrialization and achieve self-sufficiency in steel production.

He made this known during the signing ceremony held at his office in Abuja on Tuesday, October 28, 2025.

Audu described the deal as a major milestone in the administration’s efforts to revive Nigeria’s steel industry and make it a driving force behind the country’s goal of becoming a $1 trillion economy by 2030.

He explained that the project will be executed in phases, with the first phase expected to begin production by the end of 2026.

“The project will encompass a full industrial chain: from iron ore mining and smelting to steel processing and sales, positioning Nigeria as a regional hub for steel manufacturing in West Africa,” the statement signed by the Special Assistant (Media) to the Minister, Lizzy Okoji, revealed.

The minister also assured that the Federal Government remains committed to supporting investors in the steel sector by providing an enabling business environment and policy support.

He added that the initiative aligns with President Bola Tinubu’s “Renewed Hope Agenda,” which focuses on expanding industrial growth, cutting import dependency, and creating sustainable employment opportunities.

The new partnership is designed to help Nigeria reach its target of producing 10 million tonnes of crude steel annually by 2030.

It is expected to build a strong local supply chain for iron ore, reduce foreign exchange spending by more than $1 billion every year, and generate over 2,000 direct and 20,000 indirect jobs.

In addition, the project aims to support downstream industries and promote cleaner, eco-friendly steel production methods to ensure sustainable industrial growth.

“The Federal Ministry of Steel Development will, under the terms of the declaration, facilitate access to fiscal incentives, infrastructure support, and regulatory frameworks that will ensure the project’s long-term viability.

“Stellar Steel, in turn, has committed to a localised recruitment and training programme in partnership with Nigerian universities and technical institutes to build local capacity in steel technology and management.

The Group Chairman of Stellar Steel Company Limited, Xiaotian You, reaffirmed the company’s commitment to deploying advanced technologies and global best practices in the new steel plant to ensure high-quality production and environmental compliance.

It will be recalled that Minister Audu performed the groundbreaking ceremony for the same $400 million steel project in Ewekoro earlier in April 2025.

Once completed, the facility is expected to become a model for modern steel manufacturing in Nigeria, contributing significantly to infrastructure development, economic growth, and job creation.

Members of the Chinese delegation present at the signing included the President of Inner Galaxy Group, Li Shuang, Vice President Jackie Chen, and a Director of RSIN Group.

KanyiDaily recalls that Aliko Dangote recently announced that the company will no longer pursue plans to enter Nigeria’s steel industry.