The Minister of Steel Development, Prince Shuaibu Abubakar Audu, performed the groundbreaking ceremony on Wednesday for the Stellar Steel Plant, an Inner Galaxy Group investment of $400 million (approx. £320 million) in Shagamu, Ogun State.
The plant, sited on over 100 hectares, will produce hot-rolled coil, a key material for infrastructure and manufacturing.
It is expected to reduce Nigeria’s $4 billion annual steel import bill, ease pressure on foreign reserves, and generate over 3,500 direct and indirect jobs. Completion is targeted for April 2026.
The event followed the recent commissioning of African Industries Group’s $100 million Galvanised Steel Plant in Lagos. It was part of the Minister’s official tour of Lagos and Ogun states to deepen engagement with private steel stakeholders.
Prince Audu commended Inner Galaxy for supporting President Bola Ahmed Tinubu’s Renewed Hope Agenda, stressing that steel is foundational to Nigeria’s industrial ambitions.
“Steel drives infrastructure, energy, defence — everything. With projects like this, we’re laying the groundwork for a more competitive and resilient economy,” he said.
He cited Inner Galaxy’s track record, including Africa’s largest lithium plant in Nasarawa and a battery-recycling facility in Aba, as proof of its capacity to deliver large-scale industrial projects.
Speaking on behalf of Inner Galaxy’s Chairman, Mr Li Chuang, Vice President Jackie Shan thanked the federal government for its support. It reaffirmed its commitment to delivering the plant on time.
As part of his Ogun tour, the Minister also visited Proforce Defence Solutions in Ode Remo and Epail Nigeria in Mowe, two indigenous defence equipment manufacturers.
At Proforce, which produces armoured vehicles and tactical systems, Prince Audu emphasised the federal government’s plan to establish a military–industrial complex at Ajaokuta Steel Complex. He described local defence manufacturing as crucial to national security.
“Building local capacity for military production reduces dependence and enhances security,” he said.
Proforce MD Ayo Ogundeyin said the steel sector’s revival is vital to Nigeria’s goal of becoming Africa’s top defence manufacturer.
At Epail Nigeria, the Minister praised the company‘s use of advanced technology.
Epail Chairman Dr Kola Balogun called for a clear licensing and regulatory framework to support private-sector defence manufacturing, highlighting the essential role of steel in production.
The visits reinforce the federal government’s commitment to linking industrial development with national defence, positioning steel as a strategic asset for economic and security growth.
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