In a major step toward reviving Nigeria’s industrial base, the Federal Government has signed a $400 million investment deal 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, sealed by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, marks a turning point for the nation’s long-stalled steel sector, a key driver of industrial growth and infrastructure development.
According to the Ministry, the new facility will boast an annual production capacity of up to 10 million tonnes of crude steel, significantly reducing Nigeria’s dependence on imported steel and saving over $1 billion in foreign exchange each year.
“This agreement represents a concrete step towards our vision of building a $1 trillion economy by 2030,” Audu said at the signing ceremony. “With this partnership, we are setting the foundation for a modern, self-sustaining steel industry that can support manufacturing, construction, and energy sectors across Nigeria.”
Boost for Jobs and Local Capacity
The project is expected to create more than 2,000 direct jobs and an additional 20,000 indirect employment opportunities through supply chains, logistics, and ancillary services.
Beyond job creation, the initiative includes collaboration with local universities and technical institutions to enhance skills development and ensure technology transfer to Nigerian engineers and technicians.
In line with global climate commitments, Stellar Steel plans to deploy “clean and green” technologies in the production process, aligning the project with Nigeria’s Energy Transition Plan. Officials noted that the plant will not only supply domestic industries but also serve as a potential export hub for West Africa, positioning Nigeria as a regional steel powerhouse.
Ogun State as Nigeria’s Industrial Powerhouse
Ewekoro, strategically located in Ogun State’s industrial corridor, was chosen for its proximity to raw materials, existing infrastructure, and industrial-friendly policies.
Governor Dapo Abiodun welcomed the development, describing it as a “game-changer for Ogun’s industrialisation drive,” and reaffirmed the state’s commitment to providing a supportive business environment for large-scale investments.
Following the agreement, groundwork and feasibility activities are expected to commence immediately, with construction projected to begin in early 2026.
If executed as planned, the Ewekoro Steel Plant will stand as one of the largest privately-led industrial projects in Nigeria, reinforcing the country’s ambition to become self-reliant in steel production and drive inclusive economic growth.
