The Nigerian Government has inked a deal of $400 million with Stellar Steel Company Limited, a Chinese-backed firm, to establish a modern steel plant in Ewekoro, Ogun State.
The partnership aims to revitalise the country’s comatose steel industry, cut reliance on imported steel products and accelerate industrial growth, the principal information officer of the Ministry of Steel Development, Ijomah Opia, said in a statement on Wednesday.
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The minister of steel development, Shuaibu Audu, signed the agreement when he hosted Li Shuang, the president of Inner Galaxy Group, and other members of Stellar Steel Company Limited in the ministry’s headquarters in Abuja.
The project will be developed in three phases, with the first stage anticipated to commence production by the middle of next year.
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Mr Audu said the partnership aligns with the government’s goal of achieving 10 million tonnes of crude steel production annually by 2030.
“This strategic cooperation marks a new era for Nigeria’s steel industry and demonstrates the government’s commitment to sustainable industrial growth and economic transformation,” he stated.
The minister said Stellar Steel will prioritise local recruitment and training, and collaborate with Nigerian universities to build technical and managerial expertise in steel production.
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He added that the ministry will provide policy and infrastructure support, including inclusion of Stellar Steel’s logistics projects in the National Infrastructure Plan (NIP) and access to fiscal incentives.
Mr Shuang promised that Stellar Steel will respect all agreements and deliver the project in record time, observing all safety standards in the process.
In April, Mr Audu performed the groundbreaking ceremony for the steel plant in Ogun State.
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Over the years, Nigeria’s steel sector has faced major hurdles, including delayed projects, funding constraints and managerial setbacks.
Ajaokuta steel complex, touted as one of the major industrial projects in the country, remains unfinished despite substantial investment.
Nigeria spends approximately $4.5 billion (N887 billion) yearly importing basic metals, including processed steel, aluminium products, and related derivatives consumed domestically.
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