By Ayo Kehinde
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 milestone in the Tinubu administration’s efforts to revive Nigeria’s moribund steel sector and advance its Renewed Hope Industrialisation Agenda.
According to the Ministry, the project represents one of the largest single foreign direct investments in Nigeria’s manufacturing sector in recent years, reflecting renewed international confidence in the country’s reform-driven economy.
When completed, the plant is expected to be a fully integrated steel complex encompassing iron ore mining, smelting, processing, and sales — a development expected to drastically reduce Nigeria’s dependence on imported steel.
Operational in phases beginning in 2026, the Ewekoro plant is projected to create over 2,000 direct jobs and 20,000 indirect jobs, while transforming Nigeria into a regional steel manufacturing hub in West Africa.
The Federal Ministry of Steel Development will provide policy and infrastructural support, while Stellar Steel is expected to collaborate with Nigerian universities and technical institutes to train local engineers and technicians. This will ensure knowledge transfer, capacity building, and skill development within the sector.
Officials say the project aligns with the Federal Government’s goal of achieving a $1 trillion economy by 2030, anchored on industrial diversification, infrastructure expansion, and private sector partnerships.
Once fully operational, the plant will have the capacity to produce up to 10 million tonnes of crude steel annually, saving Nigeria over $1 billion in foreign exchange each year that would otherwise be spent on steel imports.
The government also emphasised that the new facility will adopt clean and green production technologies, consistent with Nigeria’s environmental sustainability goals.
Minister Audu described the agreement as a “bold step” toward restoring Nigeria’s industrial base, boosting investor confidence, and creating sustainable opportunities for local communities. He added that the project’s long-term impact would extend beyond job creation to include the development of allied industries, logistics chains, and regional export potential.
Audu reiterated the Tinubu administration’s commitment to sustainable industrial growth, local value addition, and inclusive economic progress across the nation.
