• Nigeria signed a $400 million agreement with China’s Stellar Steel to build a 10-million-ton integrated steel plant in Ogun State.
• The project will create over 2,000 direct and 20,000 indirect jobs by 2026, reducing Nigeria’s $4 billion annual steel import bill.
• The plant aims to establish a full steel value chain—from mining to finished products—under the government’s industrialization plan.

Nigeria signed a $400 million cooperation deal with Stellar Steel Company Limited, a subsidiary of China’s Inner Galaxy Group, to build an integrated steel plant in Ewekoro, Ogun State. The agreement was announced on October 29, 2025, as part of Nigeria’s efforts to expand domestic steel production and reduce imports.

Minister of Steel Development Shuaibu Abubakar Audu signed the agreement, which the presidency described as a milestone in the government’s plan to revive the steel industry. The plant will produce up to 10 million tons of crude steel annually once fully operational.

The presidential statement said the project will establish a fully integrated value chain covering iron ore mining, smelting, processing, and sales. The initiative seeks to drastically reduce Nigeria’s reliance on imported steel and build local capacity in the sector.

FG SIGNS $400 MILLION DEAL WITH STELLAR STEEL TO BOOST LOCAL STEEL PRODUCTION AND JOBS

The Federal Government has signed a $400 million Strategic Cooperation Agreement with Stellar Steel Company Limited, a subsidiary of China's Inner Galaxy Group, to establish an integrated… pic.twitter.com/cQLnDsymgC

— Presidency Nigeria (@NGRPresident) October 29, 2025

The Ministry of Steel Development will provide policy and infrastructure support to facilitate project implementation. Stellar Steel will also collaborate with Nigerian universities and technical institutes to train engineers and technicians, ensuring knowledge transfer and local skill development.

The Ewekoro steel complex is expected to generate over 2,000 direct jobs and 20,000 indirect jobs by 2026. Audu called the partnership a "major step" in the administration's plan to revitalize the steel sector. The government aims to make steel a key catalyst for national economic growth and achieve its goal of a $1 trillion economy by 2030.

Nigeria currently produces about 2.2 million tons of steel annually, well below its estimated domestic demand of 10 million tons. The country spends roughly $4 billion a year on steel imports, according to data from the National Iron Ore Mining Company (NIOMCO).

Once completed, the new facility could save Nigeria more than $1 billion annually in foreign exchange, the ministry said.

The project aligns with President Bola Tinubu’s “Renewed Hope” agenda, which seeks to boost industrial growth, attract foreign investment, and create sustainable jobs. The government has launched reforms to improve competitiveness by unifying exchange rates and tightening regulations to ensure a more transparent and efficient business environment.

Abuja aims to leverage industrial projects like Ewekoro to diversify its economy, still heavily reliant on oil exports, and develop strategic manufacturing capacity across key sectors.

This article was initially published in French by Lydie Mobio

Adapted in English by Ange Jason Quenum