(DDM) – The Federal Government of Nigeria has signed a strategic cooperation declaration with Stellar Steel Company Limited, a subsidiary of Inner Galaxy Group, for the construction of a $400 million state-of-the-art steel plant in Ewekoro, Ogun State.
Diaspora Digital Media (DDM) gathered that the agreement represents a key step in Nigeria’s renewed industrialization drive under President Bola Ahmed Tinubu’s Renewed Hope Agenda, aimed at boosting local steel production, reducing imports, and creating sustainable jobs.
According to the Minister of Steel Development, Mr. Shuaibu Abubakar Audu, who signed the deal on behalf of the Federal Government in Abuja on October 28, 2025, the project will help Nigeria achieve self-sufficiency in steel production and position the country as a major player in the global steel market.
Audu emphasized that the new plant would be developed in phases, with the first phase scheduled for completion by the end of 2026, signaling the start of production.
“The project will encompass the entire industrial value chain, from iron ore mining and smelting to steel processing and sales, positioning Nigeria as a regional hub for steel manufacturing in West Africa,” Audu stated in a release signed by his Special Assistant on Media, Ms. Lizzy Okoji.
He reaffirmed the government’s commitment to creating an enabling business environment for investors through policy incentives, infrastructure development, and regulatory support.
Under the agreement, the plant is projected to support Nigeria’s target of producing 10 million tonnes of crude steel annually by 2030, which will contribute significantly to the country’s vision of building a $1 trillion economy.
The project is also expected to create over 2,000 direct jobs and more than 20,000 indirect jobs, while fostering downstream industries and promoting clean, green steel technologies to support sustainable development.
Audu highlighted that the steel plant would help reduce foreign exchange outflows by over $1 billion annually, through the establishment of a localized iron ore supply chain that lowers production costs and strengthens domestic capacity.
On behalf of Stellar Steel, the Group Chairman, Mr. Xiaotian You, pledged to deploy advanced technologies and global best practices in the project’s execution, ensuring high-quality production standards and strict compliance with environmental sustainability regulations.
He also confirmed that Stellar Steel would implement a localized recruitment and training initiative in collaboration with Nigerian universities and technical institutes to build indigenous expertise in steel production and management.
It would be recalled that in April 2025, the Minister of Steel Development performed the groundbreaking ceremony for the same $400 million project in Ewekoro.
Upon completion, the plant is expected to serve as a benchmark for modern steel production in Nigeria, driving industrialization, infrastructure expansion, and long-term job creation across the nation.
Industry experts told DDM that this collaboration underscores the Federal Government’s renewed determination to revive the moribund steel sector, especially with renewed private sector confidence in Nigeria’s industrial policies.
The development is viewed as one of the largest foreign direct investments in Nigeria’s steel industry in recent years, setting the stage for a potential turnaround in local manufacturing and export capacity.