The Federal Ministry of Steel Development has signed a $400 million Joint Strategic Cooperation Agreement with Stellar Steel Company Limited to enhance domestic steel production and reduce Nigeria’s dependence on imported steel products. Stellar Steel Company Limited, a Nigerian-based steel manufacturer, is backed by two major 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 to build a state-of-the-art steel plant in Ewekoro, Ogun State. The project will be executed in three phases, with the first phase expected to begin production by mid-2026.
The 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 significant milestone in revitalising Nigeria’s steel industry and advancing the government’s goal of producing 10 million tonnes of crude steel annually by 2030. He added that the Ministry will provide policy and infrastructure support, including integrating Stellar Steel’s logistics projects into the National Infrastructure Plan and granting access to existing fiscal incentives.
Key highlights of the cooperation include the development of a local iron ore supply chain to reduce imports and save over $1 billion in foreign exchange annually, the creation of over 2,000 direct and 20,000 indirect jobs, the promotion of green steel production through clean and energy-efficient technologies, and the strengthening of Nigeria’s position as a regional steel hub in West Africa.
Audu also noted that Stellar Steel would prioritise local recruitment and capacity building by partnering with Nigerian universities to develop technical and managerial expertise in steel production. He emphasised that the agreement marks a new chapter for Nigeria’s steel sector and reflects the government’s commitment to sustainable industrial growth and economic diversification.
In his remarks, Mr. Li assured the Minister that Stellar Steel would honour all terms of the agreement, ensure timely completion of the project, and adhere to global safety and environmental standards. Mr. Li was accompanied 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 Minister Shuaibu Abubakar Audu had earlier performed the groundbreaking ceremony for the steel plant in Ogun State in April 2025. Both parties affirmed that the partnership would strengthen Nigeria’s industrial base, generate employment, and promote technology transfer within the nation’s steel sector.
Source: https://guardian.ng/
