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The Federal Government has announced the signing of a $400 million cooperation agreement with Stellar Steel Company Limited, a Chinese-backed firm, for the establishment of a major steel plant in Ewekoro, Ogun State. The agreement, signed in Abuja between the Federal Ministry of Steel Development and Stellar Steel, represents one of the largest foreign direct investment commitments in Nigeria’s steel sector in nearly a decade. The development was made known on the ministry’s official X handle on Wednesday. According to a statement by the Ministry’s Public Information Officer, Ijomah Opia, the agreement was signed by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, and the President of Inner Galaxy Group, Mr Li, on behalf of Stellar Steel. “The Federal Ministry of Steel Development has signed a Joint Strategic Cooperation Declaration with Stellar Steel Company Limited,” the statement read. “Stellar Steel has committed approximately US$450 million to establish a steel plant in Ogun State, scheduled to begin operations by mid-2026. This partnership aims to revitalise Nigeria’s steel industry and reduce dependence on imported steel products.” Minister Audu stated that the collaboration aligns with the Federal Government’s target of achieving 10 million tonnes of crude steel production annually by 2030, a step toward industrial self-reliance and economic diversification. “This partnership marks a new era for Nigeria’s steel industry and demonstrates our commitment to sustainable industrial growth and economic transformation,” Audu said. The agreement will also support development of a localized iron ore supply chain, expected to save over $1 billion in foreign exchange annually, creation of over 2,000 direct and 20,000 indirect jobs and promotion of green steel production through energy-efficient technologies. On his part, Mr Li assured that Stellar Steel would “honour all commitments and ensure timely completion of the project,” emphasizing compliance with safety and environmental standards. Li, who attended the signing alongside top executives from RSIN Group and Inner Galaxy Group, recalled that the minister had earlier performed the groundbreaking ceremony of the Ewekoro plant in April 2025. Both parties reaffirmed that the partnership would strengthen Nigeria’s industrial base, create jobs, and promote technology transfer across the steel ecosystem. ALSO READ TOP STORIES FROM NIGERIAN TRIBUNE
