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From Charity Nwakaudu, Abuja
The Federal Government has sealed a whopping $400 million deal with Stellar Steel Company Limited to boost local steel production and cut Nigeria’s reliance on imported steel.
The agreement, signed in Abuja, is part of the government’s renewed push to revive the steel sector and drive industrial growth.
Stellar Steel, a new entrant into Nigeria’s steel space, is backed by Chinese investors — Galaxy Group and RSIN Group from Fujian Province, China. The company plans to invest a total of $450 million to set up a modern steel plant in Ewekoro, Ogun State, expected to kick off production by mid-2026.
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, signed on behalf of the Federal Government, while Mr Li, President of Inner Galaxy Group, signed for Stellar Steel.
Prince Audu described the partnership as “a major step toward achieving Nigeria’s goal of producing 10 million tonnes of crude steel annually by 2030”, adding that the project would help drive industrial self-sufficiency and create thousands of jobs.
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“This marks a new era for Nigeria’s steel industry. The Federal Government is fully committed to supporting this project through favourable policies, infrastructure, and incentives,” Audu assured.
Under the deal, Stellar Steel will develop a local iron ore supply chain, saving the nation over $1 billion in foreign exchange yearly. It will also generate over 2,000 direct and 20,000 indirect jobs, promote green steel production, and position Nigeria as a steel hub for West Africa.
Mr Li, who led the Chinese delegation, promised to deliver the project “in record time” and in full compliance with safety and environmental standards.
It will be recalled that the minister had earlier performed the groundbreaking ceremony for the plant in April 2025.
The partnership, both parties said, will strengthen Nigeria’s industrial base, promote technology transfer, and accelerate economic diversification.
