The Federal Government has signed a $400 million Strategic Cooperation Agreement with Stellar Steel Company Limited, a subsidiary of China’s Inner Galaxy Group, to establish an integrated steel plant in Ewekoro, Ogun State.
The announcement was contained in a statement posted on the Official Handle of the Presidency of the Federal Republic of Nigeria on Wednesday.
The agreement, signed by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, on behalf of the Federal Government of Nigeria, marks a major step toward reviving Nigeria’s steel industry.
Once completed, the Ewekoro plant will enable Nigeria to produce up to 10 million tonnes of crude steel annually, positioning the country as a key regional hub for steel manufacturing in West Africa.
“The Federal Government has signed a $400 million Strategic Cooperation Agreement with Stellar Steel Company Limited, a subsidiary of China’s Inner Galaxy Group, to establish an integrated steel plant in Ewekoro, Ogun State.
“The agreement, signed by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, marks a major step toward reviving Nigeria’s steel industry and advancing President Bola Ahmed Tinubu’s Renewed Hope industrialisation agenda, ” the statement read in part.
It added, “Once completed, the Ewekoro plant will enable Nigeria to produce up to 10 million tonnes of crude steel annually, saving over $1 billion in foreign exchange each year.”
He added that the facility would generate more than 2,000 direct jobs in Ewekoro and about 20,000 indirect jobs along the steel value chain
Stellar Steel’s Assurance
In his response, Mr. Li assured the minister that Stellar Steel would honour all terms of the agreement and deliver the plant within record time. He pledged that the project would meet international standards and that the company would strictly observe environmental and safety protocols during both the construction and production phases.
“We are determined to see this project through to completion, and we will ensure that it is done with the highest safety and quality standards,” Li said.
He emphasised that Stellar Steel viewed Nigeria as a key strategic partner and that the company was committed to supporting the country’s industrialisation agenda.
The signing of the agreement is being seen as a potential turning point for Nigeria’s troubled steel sector, which has struggled for decades to live up to its potential despite huge investments.
For Audu, the Ewekoro plant is proof that Nigeria can finally move beyond abandoned projects and stalled initiatives, such as Ajaokuta, and embrace a new chapter in its industrial journey.
“This cooperation demonstrates our seriousness in transforming the steel industry into a sustainable driver of jobs, infrastructure and economic development.
The era of missed opportunities must end. This project is a symbol of what we intend to achieve in the years ahead,” the minister concluded.
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