FG, Stellar Steel Sign $400m Deal to Boost Local Steel Production

The Federal Ministry of Steel Development has signed a Joint Strategic Cooperation Declaration with Stellar Steel Company Limited. Stellar Steel Company Limited is a steel-manufacturing enterprise established to operate in Nigeria, with major investment backing from Chinese parent groups: Galaxy Group and RSIN Group based in Fuzhou, Fujian Province, China. 

The company has committed approximately US$450 million for a steel plant project in Ogun State, Nigeria, scheduled to begin operations by mid-2026. This landmark partnership is aimed at revitalizing Nigeria’s steel industry and reducing the nation’s dependence on imported steel products.

The agreement, signed in Abuja, on Tuesday 28th October, 2025 will see Stellar Steel invest $400 million in the construction of a modern Steel Plant in Ewekoro, Ogun State. The project will be developed in three phases, with the first phase expected to begin production by 2026.

The Honorable Minister of Steel Development Prince Shuaibu Abubakar Audu signed the agreement when he hosted Mr. Li, President of Inner Galaxy Group and other members of the Stellar Steel Company Limited in the Ministry's Headquarters in Abuja. 

According to Prince Audu, the collaboration aligns with the Federal Government’s goal of achieving 10 million tonnes of crude steel production per annum by 2030, a major step toward industrial self-reliance and economic diversification.

The Honorable Minister further stated that the  Federal Ministry of Steel Development will facilitate policy and infrastructure support, including inclusion of Stellar Steel’s logistics projects in the National Infrastructure Plan and access to available fiscal incentives.

Highlights of the Cooperation includes;

1.Development of a localized iron ore supply chain to reduce import dependence and save over $1 billion in foreign exchange annually.

2. Creation of more than 2,000 direct and 20,000 indirect jobs across the steel value chain.

3. Promotion of green steel production using clean and energy-efficient technologies.

4. Strengthening of Nigeria’s position as a regional steel manufacturing hub in West Africa.

He also stated that in return, Stellar Steel will prioritize local recruitment and training, partnering with Nigerian universities to build technical and managerial expertise in steel production.

Prince Shuaibu emphasized that this strategic cooperation marks a new era for Nigeria’s steel industry and demonstrates the government’s commitment to sustainable industrial growth and economic transformation.

In his remarks the leader of the delegation, Mr. Li assured the Honourable Minister that Stellar Steel Company Limited will respect all agreements reached and will ensure the completion of the project in record time and assured that all safety standards will be observed.

Mr. Li was accompanied during the visit 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 the Honourable Minister of Steel Department, Prince Shuaibu Abubakar Audu, performed the groundbreaking ceremony of the Steel Plant in Ogun State sometime in April, 2025.

Speaking at the signing, representatives of both parties emphasized that the partnership would strengthen Nigeria’s industrial base, create jobs, and foster technology transfer in the sector.