The Federal Government of Nigeria has signed a $400 million strategic cooperation agreement with Inner Galaxy Group’s subsidiary, Stellar Steel Company Limited, to establish a new integrated steel plant in Ewekoro, Ogun State. The project aims to fast-track Nigeria’s industrialization and advance the country’s goal of achieving self-sufficiency in steel production.
The Joint Strategic Cooperation Declaration was signed in Abuja on Tuesday, October 28, 2025, by the Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu, on behalf of the Federal Government, and Mr. Xiaotian You, Group Chairman of Stellar Steel Company Limited.
Prince Audu described the agreement as a major milestone in the administration’s commitment to reviving Nigeria’s steel sector and positioning it as a driver of national economic growth in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda. He noted that the new steel plant, when completed, would play a pivotal role in helping Nigeria attain a $1 trillion economy by 2030.
According to the Minister, the project will be executed in phases, with the first phase expected to commence production by the end of 2026. The facility will integrate the entire steel value chain — from iron ore mining and smelting to steel processing and sales — making Nigeria a leading hub for steel manufacturing in West Africa.
“This partnership reflects our resolve to create an enabling environment for investors and to build a strong, self-reliant industrial base for Nigeria. The new steel plant will not only boost local production but also reduce import dependence, conserve foreign exchange, and create thousands of jobs,” Prince Audu stated.
The cooperation agreement outlines key objectives including:
Supporting Nigeria’s target of producing 10 million tonnes of crude steel annually by 2030.
Developing a localized iron ore supply chain to reduce production costs and save over $1 billion annually in foreign exchange.
Creating over 2,000 direct and 20,000 indirect jobs, stimulating downstream industries.
Promoting clean and green steel technologies for sustainable industrial growth.
Under the terms of the declaration, the Federal Ministry of Steel Development will facilitate fiscal incentives, infrastructure support, and regulatory frameworks to ensure the project’s success. Stellar Steel will implement a local recruitment and training programme in collaboration with Nigerian universities and technical institutes to strengthen domestic expertise in steel production and management.
Speaking at the signing, Mr. Xiaotian You reaffirmed Stellar Steel’s commitment to deploying advanced technologies and global best practices in steel manufacturing. He emphasized that the plant would adhere to international quality standards and environmental sustainability requirements.
Also present at the signing were Mr. Li Shuang, President of Inner Galaxy Group; Mr. Jackie Chen, Vice President; and Mr. Yin, Director of RSIN Group.
It will be recalled that the Honourable Minister had earlier performed the groundbreaking ceremony for the Ewekoro steel plant in April 2025. Upon completion, the facility is expected to serve as a benchmark for modern steel production in Nigeria, significantly contributing to national infrastructure, industrial growth, and job creation.