By. Ahmed Ahmed
The federal government has signed a $400 million strategic cooperation agreement with Stellar Steel Company Limited, a subsidiary of Inner Galaxy Group, for the establishment of a modern integrated steel plant in Ewekoro, Ogun State.
The agreement, formalised by the Federal Ministry of Steel Development, is a key step in Nigeria’s renewed drive to accelerate industrialisation and achieve self-sufficiency in steel production.
Speaking during the signing ceremony in Abuja on October 28, 2025, Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu, described the deal as a milestone in President Bola Tinubu’s Renewed Hope Agenda, aimed at revitalising the steel sector and positioning it as a major catalyst for national growth.
“The new steel plant will be completed in phases, with the first phase scheduled to commence production by the end of 2026,” Audu said.
According to a statement signed by the minister’s media aide, Lizzy Okoji, the project will feature a full industrial chain – from iron ore mining and smelting to steel processing and sales – effectively positioning Nigeria as a regional hub for steel manufacturing in West Africa.
Prince Audu reaffirmed the government’s commitment to creating an enabling environment for strategic investors in the steel sector. He noted that the project aligns with Nigeria’s ambition to produce 10 million tonnes of crude steel annually by 2030, a target expected to boost infrastructure development and reduce import dependency.
The $400 million investment is projected to generate over 2,000 direct and 20,000 indirect jobs, while building a localised iron ore supply chain capable of saving over $1 billion annually in foreign exchange outflows.
“Under the terms of the declaration, the ministry will facilitate fiscal incentives, infrastructure support, and a regulatory framework to ensure the project’s long-term viability,” Prince Audu explained.
He stated that Stellar Steel would implement a local recruitment and training programme in collaboration with Nigerian universities and technical institutes to strengthen domestic capacity in steel technology and management.
Signing on behalf of Stellar Steel Company Limited, Mr. Xiaotian You, Group Chairman of Inner Galaxy, expressed the company’s readiness to deploy advanced technologies and adhere to global best practices in environmental sustainability.
“Our goal is to build a facility that not only meets global standards in steel production but also supports Nigeria’s green industrialisation agenda,” he said.
It would be recalled that the minister performed the groundbreaking ceremony for the same project in April 2025. Once completed, the plant is expected to serve as a benchmark for modern steel production in Nigeria – enhancing infrastructure, boosting exports, and strengthening local manufacturing capacity.
Also present at the signing were Li Shuang, President of Inner Galaxy Group; Jackie Chen, Vice President; and a director of the RSIN Group, who were part of the Chinese delegation.
