Nigeria Signs Landmark $400m Agreement with Chinese Firm to Boost Local Steel Production

Nigeria’s long-awaited push for industrial transformation received a major boost on Wednesday as the Federal Government signed a $400 million cooperation agreement with Stellar Steel Company Limited, a Chinese-backed firm, to establish a state-of-the-art steel plant in Ewekoro, Ogun State.

The agreement—one of the largest foreign direct investment commitments in Nigeria’s steel sector in nearly a decade—was signed in Abuja between the Federal Ministry of Steel Development and Stellar Steel Company Limited, supported by its Chinese parent companies, Galaxy Group and RSIN Group, both based in Fuzhou, Fujian Province.

According to a statement by the ministry’s Public Information Officer, Ijomah Opia, the deal was formalised by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, and Mr. Li, President of Inner Galaxy Group, on behalf of Stellar Steel.

The ministry disclosed that Stellar Steel will invest approximately $450 million in the Ewekoro project, which is expected to begin operations by mid-2026. The partnership aims to revive Nigeria’s dormant steel industry, cut import dependency, and position the country as a regional hub for steel production in West Africa.

Minister Audu stated that the collaboration aligns with the government’s goal of achieving 10 million tonnes of crude steel output annually by 2030, in line with Nigeria’s industrialisation and economic diversification agenda.

He added that the ministry will ensure policy and infrastructure support for the project, including the integration of Stellar Steel’s logistics plans into the National Infrastructure Plan and access to fiscal incentives to promote smooth implementation.

The agreement also outlines several key deliverables, including:

Development of a local iron ore supply chain to save over $1 billion annually in foreign exchange;

Creation of more than 2,000 direct and 20,000 indirect jobs across the steel value chain;

Promotion of green and energy-efficient steel production technologies;

Strengthening of Nigeria’s position as West Africa’s steel manufacturing hub.


Audu further disclosed that Stellar Steel will prioritise local recruitment and training, working closely with Nigerian universities to develop technical and managerial expertise in the steel industry.

Describing the partnership as a new dawn for Nigeria’s steel sector, the minister reaffirmed the government’s commitment to sustainable industrial growth and economic transformation.

In his response, Mr. Li assured the government that Stellar Steel would adhere to all agreements and ensure the timely completion of the project, maintaining the highest safety and operational standards. He was accompanied by top executives from RSIN Group and Inner Galaxy Group.

Li also recalled that the minister had performed the groundbreaking ceremony for the Ewekoro steel plant in April 2025, marking the beginning of the company’s investment journey in Nigeria.

Both parties reiterated that the partnership will strengthen Nigeria’s industrial base, generate employment, and facilitate technology transfer across the steel value chain.

Nigeria’s steel sector has long been hindered by decades of underinvestment and the failure of the Ajaokuta Steel Complex. Despite vast iron ore reserves, the country still imports over $4 billion worth of steel products annually, meeting less than 10 percent of local demand through domestic production.