By Bitrus Kozah, Abuja
The Nigerian Government has signed a $400 million joint strategic cooperation agreement with Stellar Steel Company Limited to establish a modern steel plant in Ewekoro, Ogun State, Southwest Nigeria.
The agreement is part of efforts to revive Nigeria’s long-dormant steel industry and reduce dependence on imported steel.
The landmark agreement, signed in Abuja Nigeria’s capital on Tuesday, October 28, 2025, was endorsed by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, and Mr. Li, President of Inner Galaxy Group, on behalf of Stellar Steel.
Speaking during the ceremony, Prince Audu said the collaboration is a major step towards achieving the Federal Government’s target of producing 10 million tonnes of crude steel annually by 2030, thereby driving industrial self-reliance and economic diversification.
“This partnership marks a new era for Nigeria’s steel industry and demonstrates the government’s commitment to sustainable industrial growth and economic transformation,” the Minister stated.
Under the deal, Stellar Steel, backed by major Chinese investors Galaxy Group and RSIN Group of Fuzhou, Fujian Province, will invest $400 million in constructing a state-of-the-art steel plant to be developed in three phases, with production expected to begin by mid-2026.
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Prince Audu noted that the Ministry “will facilitate policy and infrastructure support for the project, including the inclusion of Stellar Steel’s logistics components in the National Infrastructure Plan and access to fiscal incentives.”
Key highlights of the cooperation include: development of a localised iron ore supply chain, saving 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 through clean, energy-efficient technologies; and strengthening of Nigeria’s position as a regional steel manufacturing hub in West Africa.
Prince Audu further revealed that Stellar Steel will prioritise local recruitment and training, partnering with Nigerian universities to build technical and managerial expertise in steel production.
Global safety and environmental standards
In his remarks, Mr. Li assured the Minister that Stellar Steel will adhere strictly to all agreements and complete the project within schedule, emphasising that the company will maintain global safety and environmental standards throughout the project lifecycle.
“We are fully committed to Nigeria’s industrial growth and will ensure the project is completed in record time,” Mr. Li pledged.
He 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.
Mr. Li also recalled that the Minister had performed the groundbreaking ceremony for the project in April 2025, describing the current signing as the beginning of an “implementation phase that will deliver tangible results.”
The partnership, both sides agreed, is expected to strengthen Nigeria’s industrial base, create jobs, and foster technology transfer to boost local production capacity in the steel sector.