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.
Vision
“To have a virile sustainable and inclusive steel industry that can compete globally and be driving for industrial and economic growth of our country while maintaining internationally acceptable standard”
Mission
“To ensure industry and Government strengthen the capability and competitiveness of Nigeria steel industry to achieve self sufficiency in steel production by providing policy support and guardian and to help mitigate potential challenges and barriers that are preventing the growth of Nigeria steel industry”
MINISTRY OF STEEL DEVELOPMENT PARTNERS NIPC ON REVIVAL OF NMTI/NSRMEA
In line with the Renewed Hope Agenda of the Bola Ahmed Tinubu’s Administration and in achieving its mandate of ensuring that the nation’s Steel Sector contribute to the sustainable development of the economy and grow the Gross Domestic Product (GDP), the Ministry of Steel Development is to collaborate with the Nigerian Investment Promotion Commission for the development of the sector in general and the Revitalization and Operationalization of the National Steel Raw Materials Exploration Agency (NSRMEA) Kaduna and the National Metallurgical Institute, Onitsha.
This was disclosed by the Honourable Minister of State, Ministry of Steel Development, His Excellency, Uba Maigari Ahmadu when he played host to the Executive Secretary/CEO of the Nigerian Investment Promotion Commission, Aisha Rimi in the Ministry’s Headquarters on Thursday, 23rd November, 2023 in Abuja.
He enumerated the areas of collaboration to include among others: Organizing local and international investment fora for relevant stakeholders to showcase the full potentials of the NMTI with the view of attracting investments and funding for modernizing and upgrading the institute’s facilities, curriculum, and training programs to meet industry international best standards and demand; Develop Policy Reforms and incentives that would be inclusive but not limited to legal, governance, finance tax incentives, and regulatory reforms that would reposition the institute to contribute more meaningfully to national manpower and infrastructure development.
The Minister listed more areas of collaboration to include: Identifying local and international multilateral, multinational, Institutional and venture capitalists who can inject technical and financial capital into revitalizing the institute and position it as a center of excellence for metallurgical training and skills development; Establishing a PPP (Public Private Partnership) framework for the revival of NMTI that would involve engaging with private sector stakeholders, such as steel companies, mining firms, and educational institutions, to form partnerships aimed at modernizing the institute and aligning its training programs with industry.
Continuing, he identified areas of partnership with NIPC for NSRMEA to comprise: Accelerating Investment interest from both Local and International Investments in Exploration Projects, with special interest in steel raw materials such as Iron ore, Manganese, Coal, Refractory, Limestone, through establishing partnerships with mining companies and exploration firms; Organizing targeted investor outreach programmes to engage potential investors interested in supporting the exploration and development of steel raw materials as well as Advocating for Policy Reforms and incentives to encourage private sector investment in raw materials exploration.
Additionally, the Minister disclosed that, Niger Extraction Company Ltd, a Nigerian Company registered to undertake mining and steel development has sent in a proposal for the establishment of a $300m Steel Plant in Niger State, a development which according to him, indicates that the Steel Sector is set to take off and deliver on its mandate.
Maigari Ahmadu expressed the Ministry’s willingness to leverage on the expertise and networks of NIPC, noting that the collaborative efforts of both Organisations would help attract private sector investment, modernize exploration techniques, and enhance the capacity of NMTI and NSRMEA to fulfill their mandates.
Also speaking, the Permanent Secretary, Ministry of Steel Development/Ministry of Solid Minerals Development, Dr. Mary A Ogbe, while expressing optimism that the collaboration between the Ministry of Steel Development and the Nigerian Investment Promotion Commission is a step in the right direction, reiterated the Ministry’s commitment to ensure the goals set during the deliberations are achieved. She added that it was time the Steel Sector brought the needed prosperity to the people of Nigeria.
The Permanent Secretary proposed the establishment of a Technical Working Group (TWG) with members drawn from the Ministry of Steel Development and NIPC, with the sector specific experts who will develop a framework that will enhance the development of the sector on a general scale and the National Metallurgical Institute, Onitsha and National Steel Raw Materials Exploration Agency (NSRMEA) Kaduna,
specifically.
In her remarks, the Executive Secretary/CEO of Nigerian Investment Promotion Commission, Aisha Rimi stated that the Commission’s mandate is to provide assistance to investors seeking to enter the and those that are already in the country. She disclosed that NIPC has extensive and robust Departments that assist in carrying out adequate care and after care for investment and investors.
Rimi assured of the Commission’s commitment to ensure all assistance is given to the Steel Sector to promote direct foreign investment into the country.
FG COMMITS TO INSURANCE COVERAGE -UNVEILS OVERHAULING STRATEGY FOR NIGERIA’S STEEL SECTOR REVIVAL
The Federal Government through the newly created Ministry of Steel Development has taken significant steps towards rejuvenating the nation’s steel sector by announcing a comprehensive insurance coverage for all ongoing steel projects within the country.
The Hon. Minister of Steel Development, Prince Shuaibu Abubakar Audu made this declaration during a crucial meeting with key agencies under the Ministry. These are namely- Ajaokuta Steel Company Limited; National Iron -Ore Mining Company, Itakpe; National Steel Raw Materials Exploration Agency; Metalurgical Training Institute and National Metallurgical Development Center, Jos.
During the interface with the DGs of Agencies, Prince Audu explained that the deliberate policy of the present administration to introduce insurance coverage for steel projects is a critical step to mitigate the risks and uncertainties inherent in large scale developmental endeavors.
The Hon. Minister further stated that by providing this insurance coverage, the government aims to foster an environment that is conducive to attracting investments in to the steel sector, securing financing and expediting the successful completion of various steel related initiatives across the country.
To this end, Prince Audu noted that to ensure a structured successful implementation of this policy, the Ministry would outline a comprehensive two- year activation plan- adding, the strategic plan is designed to catalyze the revival of all steel associated interventions: Which underscored a steadfast commitment to achieving tangible progress within stipulated timeframe.
Continuing, the Hon. Minister for Steel Development affirmed that the journey towards revitalizing the steel sector is beyond insurance coverage. He said: “the government has devised a comprehensive overhauling strategy to tackle the multi- faceted challenges impeding the sector’s growth. Central to this strategy is the optimization of skilled labour and enhancing security measures to ensure safe and productive working atmosphere”.
While citing other indices for solutions, Prince Audu listed them to include- the rehabilitation of the rail infrastructure connecting the Itakpe and Ajaokuta Steel Complexes; a functioning rail network for transportation of raw materials and finished products. This, the Hon. Minister noted, has the potentials to significantly boost the operational efficiency of these complexes, thereby positively influencing the entire street value chain.
The attention of the Federal Ministry of Steel Development has been drawn to recent media reports regarding the future of the Ajaokuta Steel Company Limited (ASCL).
While we note the concerns expressed, it is important to state that the Federal Government remains firmly committed to the development of Nigeria’s steel sector, including the resuscitation of ASCL.
A comprehensive technical and financial audit of the plant is presently underway to ensure that any decision taken is transparent, data-driven and in the best interest of Nigeria. The overall assessment of the previous technical audit report dated 2018 maintained that the general status of the Steel Plant is in robust condition except for normal deterioration of replaceable parts and recommended automation of manual control systems for improved efficiency. The Ministry remains confident that the updated audit will provide a sound basis for decisive action that advances Nigeria’s industrial aspirations.
The Federal Government is determined to build a competitive and modern steel industry that supports national industrialization and infrastructure growth.
Salamatu Jibaniya
Head, Press and Public Relations Department
for: Ministry of Steel Development
SHAPING THE FUTURE OF NIGERIA’S METALS & MINERALS SECTOR AT THE 2025 NIGERIA MINING WEEK
Honourable Minister of Steel Development, Shuaibu Abubakar Audu
COURTESY VISIT OF THE VENEZUELAN AMBASSADOR TO NIGERIA, ALBERTO CASTELLAR PADILLA TO THE HONOURABLE MINISTER, PRINCE SHUAIBU ABUBAKAR AUDU
The Honourable Minister of Steel Development, Prince Shuaibu Abubakar Audu, the Venezuelan Ambassador to Nigeria, Alberto Castellar Padilla.