The Federal Ministry of Steel Development has signed a $400 million joint strategic cooperation agreement with Inner Galaxy Group’s Stellar Steel Company Limited for the establishment of a modern integrated steel plant in Ewekoro, Ogun State.
The agreement, signed in Abuja on Tuesday, October 28, 2025, is part of the Federal Government’s efforts to accelerate Nigeria’s industrialisation and achieve self-sufficiency in steel production, according to a statement by the Minister of Steel Development, Prince Shuaibu Abubakar Audu.
Audu, who signed on behalf of the Federal Government, described the partnership as a major milestone in President Bola Tinubu’s Renewed Hope Agenda, aimed at revitalising the steel sector as a key driver of the administration’s plan to build a $1 trillion economy by 2030.
“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 minister stated in a release signed by his Special Assistant (Media), Lizzy Okoji.
The plant will be developed in phases, with the first phase expected to commence production by the end of 2026.
Boost for Industrial Growth and Job Creation
Audu reaffirmed the government’s commitment to creating an enabling environment for investors, adding that the project aligns with national goals to reduce import dependence, boost local content, and generate employment.
The steel plant is projected to produce part of Nigeria’s 10 million-tonne annual crude steel target by 2030, build a localized iron ore supply chain, and save over $1 billion annually in foreign exchange.
It is also expected to create more than 2,000 direct and 20,000 indirect jobs, support downstream industries, and promote clean and green steel technologies for sustainable industrial development.
Under the agreement, the Ministry of Steel Development will provide fiscal incentives, infrastructure support, and regulatory facilitation to ensure the project’s long-term success.
Stellar Steel, in return, has committed to implementing a localized recruitment and training programme in partnership with Nigerian universities and technical institutes to develop domestic expertise in steel technology and management.
Commitment to Sustainability
Signing on behalf of Stellar Steel, the Group Chairman of Inner Galaxy, Xiaotian You, pledged to deploy advanced technologies and global best practices to ensure the plant meets international standards for quality and environmental sustainability.
“When completed, the plant will serve as a benchmark for modern steel production in Nigeria, contributing significantly to national development, infrastructure growth, and job creation,” You said.
Also present at the signing ceremony were the President of Inner Galaxy Group, Li Shuang, the Vice President, Jackie Chen, and a director of the RSIN Group.
It will be recalled that Minister Audu performed the groundbreaking ceremony for the $400 million project in April 2025.
