The Federal Ministry of Steel Development has signed a $400 million Joint Strategic Cooperation Agreement with Stellar Steel Company Limited to boost local steel production and reduce Nigeria’s reliance on imported steel products.
Stellar Steel Company Limited is a steel-manufacturing enterprise established to operate in Nigeria, with major investment backing from two Chinese conglomerates, Galaxy Group and RSIN Group, both headquartered in Fuzhou, Fujian Province, China.
Under the agreement signed in Abuja on Tuesday, October 28, 2025, Stellar Steel will invest $400 million in the construction of a modern steel plant in Ewekoro, Ogun State.
The project will be developed in three phases, with the first phase expected to commence production by mid-2026.
Minister of Steel Development Prince Shuaibu Abubakar Audu signed the agreement on behalf of the Federal Government during a courtesy visit by the management of Stellar Steel Company Limited, led by Mr Li, President of Inner Galaxy Group, at the Ministry’s headquarters in Abuja.
In a statement, Audu described the partnership as a major milestone toward revitalising Nigeria’s steel industry and achieving the Federal Government’s target of 10 million tonnes of crude steel production annually by 2030.
The Minister said that the Federal Ministry of Steel Development will facilitate policy and infrastructure support, including inclusion of Stellar Steel’s logistics projects in the National Infrastructure Plan and access to available fiscal incentives.
Highlights of the Cooperation includes; “Development of a localized iron ore supply chain to reduce import dependence and save over $1 billion in foreign exchange annually.
“Creation of more than 2,000 direct and 20,000 indirect jobs across the steel value chain. Promotion of green steel production using clean and energy-efficient technologies. Strengthening of Nigeria’s position as a regional steel manufacturing hub in West Africa.”
He also stated that in return, Stellar Steel will prioritise local recruitment and training, partnering with Nigerian universities to build technical and managerial expertise in steel production.
Prince Shuaibu emphasised that 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.
In his remarks, the leader of the delegation, Mr. Li, assured the Honourable Minister that Stellar Steel Company Limited will respect all agreements reached and will ensure the completion of the project in record time, and assured that all safety standards will be observed.
Mr. Li was accompanied during the visit by Mr. You Xiastian, Vice Chairman of RSIN Group, Mr. Jackie Den, Vice President of Inner Galaxy Group, and Mr. Yin, Director of RSIN Group.
He recalled that the Honourable Minister of the Steel Department, Prince Shuaibu Abubakar Audu, performed the groundbreaking ceremony of the Steel Plant in Ogun State sometime in April 2025.
Speaking at the signing, representatives of both parties emphasised that the partnership would strengthen Nigeria’s industrial base, create jobs, and foster technology transfer in the sector.
