The Federal Government has entered into a $400 million Strategic Cooperation Agreement with Stellar Steel Company Limited, a subsidiary of China’s Inner Galaxy Group, to build an integrated steel plant in Ewekoro, Ogun State.

The Presidency announced the development in a statement released on its official X handle on Wednesday.

The Minister of Steel Development, Prince Shuaibu Abubakar Audu, signed the agreement on behalf of the Federal Government, describing it as a significant milestone in efforts to revive Nigeria’s steel industry.

Upon completion, the Ewekoro steel plant is expected to produce up to 10 million tonnes of crude steel annually, positioning Nigeria as a major regional hub for steel manufacturing in West Africa.

“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 steel plant in Ewekoro, Ogun State.

“The agreement, signed by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, marks a major step toward reviving Nigeria’s steel industry and advancing President Bola Ahmed Tinubu’s Renewed Hope industrialisation agenda.

“Once completed, the Ewekoro plant will enable Nigeria to produce up to 10 million tonnes of crude steel annually, saving over $1 billion in foreign exchange each year,” the statement read in part.

Once operational, the plant is expected to create more than 2,000 direct and 20,000 indirect jobs. Stellar Steel will also collaborate with Nigerian universities and technical institutes to train engineers and technicians, promoting local capacity building and technology transfer.

The statement added that the initiative aligns with the Federal Government’s broader plan to cut dependence on imported steel, save over $1 billion in foreign exchange each year, and drive industrial diversification toward achieving a $1 trillion economy by 2030.

It further noted that the project will adopt clean and green production technologies, underscoring the administration’s commitment to sustainable industrial growth and inclusive economic development.

Days before the official announcement of its $400 million agreement with the Federal Government, Stellar Steel Company Limited — a subsidiary of China’s Galaxy Group and RSIN Group — had already advanced plans to build a $450 million integrated steel plant in Ogun State.

The plant, set to begin operations by mid-2026, will produce hot-rolled coil steel, iron steel doors, and gas cylinders, significantly cutting Nigeria’s dependence on imported steel.