Nigeria Signs $400m Deal to Revive Steel Industry in Ogun
By Naija Enquirer Staff
When the Federal Government signed a $400 million joint cooperation agreement with Inner Galaxy Group’s Stellar Steel Company Limited this week, it signaled more than another industrial partnership it marked the rekindling of Nigeria’s long-standing ambition to build a self-reliant steel industry.
The signing ceremony, held at the Federal Ministry of Steel Development in Abuja, brought together senior government officials and investors with a common vision: transforming Ewekoro in Ogun State into a major hub for steel production. The Minister of Steel Development, Prince Shuaibu Abubakar Audu, said the project aligns with President Bola Tinubu’s plan to drive Nigeria toward a $1 trillion economy by 2030.
“This partnership marks a major milestone in reviving the steel sector and making it a driver of national growth,” Audu said, adding that production is expected to begin by the end of 2026.
Industrial Ambition
The proposed steel complex will encompass the full production chain — from iron ore mining and smelting to steel processing and sales — positioning Nigeria as a leading manufacturing hub in West Africa. The facility aims to produce up to 10 million tonnes of crude steel annually by 2030.
Beyond industrial output, the deal promises significant socio-economic benefits. The ministry projects the creation of over 2,000 direct jobs and 20,000 indirect jobs, as well as savings exceeding $1 billion in foreign exchange currently spent on steel imports. Stellar Steel also pledged to invest in local talent through training programs and partnerships with Nigerian universities and technical institutes.
Building for the Future
For Stellar Steel, the Ewekoro plant represents more than industrial ambition — it’s a commitment to sustainability and technological innovation. Group Chairman Xiaotian You said the facility would operate using modern, eco-friendly production systems aligned with international environmental standards.
“The project is about building a future for Nigeria’s steel industry,” Xiaotian You stated, emphasizing the company’s long-term commitment to the nation’s economic transformation.
Opportunities and Challenges Ahead
Nigeria possesses the essential raw materials for steel production — including iron ore in Kogi and coal and limestone in Enugu — along with growing domestic demand from large-scale infrastructure projects. However, industry challenges persist: limited domestic output, inactive state-owned plants like Ajaokuta and Delta Steel, unreliable power supply, and outdated technology continue to impede progress.
Industry analysts suggest that if these systemic issues are effectively tackled, the new partnership could catalyze a long-awaited industrial revival — creating jobs, reducing import dependency, and positioning Nigeria as a key player in Africa’s manufacturing landscape.
With the Ogun project underway, Nigeria’s decades-long dream of a thriving steel industry may finally begin to take shape — forging not just steel, but a stronger national economy.
