The federal government has signed a US$400 million 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 deal was finalised on October 28 in Abuja by the Federal Ministry of Steel Development.
The plant is part of the government’s broader industrialisation strategy, aimed at reviving Nigeria’s steel industry, reducing import dependence, and creating thousands of jobs.
Key Details of the Deal
* The project will be developed in three phases, with the first phase expected to become operational by mid-2026.
* Stellar Steel will deploy modern clean-steel technologies and collaborate with Nigerian technical institutes to train local personnel.
* The facility is projected to produce crude steel at scale, establish a local iron ore supply chain, and save Nigeria over US$1 billion annually in steel imports.
Expected Impacts
* Job creation: Over 2,000 direct and 20,000 indirect jobs are expected across the steel value chain.
* Industrial growth: The project supports President Bola Ahmed Tinubu’s “Renewed Hope” agenda and aims to position Nigeria as a regional steel manufacturing hub.
* Economic benefits: By reducing reliance on imports, the plant is expected to strengthen the local economy and conserve foreign exchange.
Challenges Ahead
Analysts warn that structural issues — including energy reliability, access to raw materials, and logistics — must be addressed for the project to succeed.
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Previous steel-sector initiatives have faced delays due to funding and infrastructure bottlenecks.
What To Expect
If delivered on schedule, the Ogun steel plant could mark a turning point for Nigeria’s industrial landscape, reducing import dependency and boosting downstream manufacturing. Stakeholders will be closely monitoring the project’s execution and whether it meets projected timelines.
