Nigeria, Stellar Steel $400m Deal To Create 22,000 Jobs

Nigeria has taken steps to revitalise its domestic steel sector as the Federal Ministry of Steel Development signed a Joint Strategic Cooperation Declaration with Stellar Steel Company Limited, paving the way for creating more than 22,000 new jobs across the country’s steel value chain.

Stellar Steel, a Nigerian-incorporated manufacturer backed by Chinese investors Galaxy Group and RSIN Group of Fuzhou, Fujian Province, is committing $400 million (£315 million) to construct a state-of-the-art steel plant in Ewekoro, Ogun State. The project is expected to commence operations by mid-2026.

According to a statement issued by Ijomah E. Opia of the Ministry’s Information and Public Relations Department, the agreement was formalised in Abuja on Tuesday, 28 October 2025, by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, who hosted Mr Li, President of Inner Galaxy Group, and the Stellar Steel delegation at the Ministry’s headquarters.

Prince Audu described the partnership as a “transformational milestone”, aligning with the Federal Government’s vision to achieve 10 million tonnes of crude steel production annually by 2030 — a key step towards industrial self-reliance and economic diversification.

“This collaboration underscores our commitment to building a sustainable and competitive steel industry. By 2030, Nigeria aims to be self-sufficient in steel production, powering industries and creating jobs for our citizens,” he said.

The Minister added that the Ministry would extend both policy and infrastructure support, including the inclusion of Stellar Steel’s logistics initiatives in the National Infrastructure Plan and fiscal incentives to ensure smooth project delivery.

22,000 Jobs and $1bn in Savings: Key highlights of the partnership include establishing a localised iron ore supply chain designed to reduce import dependence and save over $1 billion in foreign exchange annually.

The project is expected to create more than 2,000 direct and 20,000 indirect jobs across the steel value chain.

Other features include promoting green steel production through clean, energy-efficient technologies and strengthening Nigeria’s position as West Africa’s regional steel manufacturing hub.

Prince Audu further noted that Stellar Steel would prioritise local recruitment and capacity building, collaborating with Nigerian universities to develop technical and managerial expertise in steel production.

“This strategic cooperation marks a new era for Nigeria’s steel industry and demonstrates the government’s dedication to sustainable industrial growth and economic transformation,” Audu said.

In his remarks, Mr Li, president of Inner Galaxy Group, reaffirmed Stellar Steel’s commitment to timely delivery and adherence to the highest safety and environmental standards.

“We are committed to delivering this project on time and to the highest standards. Stellar Steel will be a model for industrial cooperation between Nigeria and China,” Li said.

Li was accompanied by You Xiastian, vice chairman of RSIN Group; Jackie Den, Vice President of Inner Galaxy Group; and Yin, Director of RSIN Group. He also recalled that the Minister had performed the groundbreaking ceremony for the Ogun State steel plant in April 2025, marking the project’s early momentum.

Both parties reaffirmed that the partnership will strengthen Nigeria’s industrial base, create sustainable jobs, and accelerate technology transfer, setting the stage for a new era of national economic growth.