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FG, Stellar Steel Sign $400m Deal to Boost Nigeria’s Steel Production
FG and Stellar Steel sign a $400m deal to build a steel plant in Ogun State, targeting 10m tonnes output by 2030 and creating 20,000 jobs nationwide.
The Federal Government has signed a $400 million joint strategic cooperation agreement with Stellar Steel Company Limited to boost Nigeria’s steel production capacity and advance industrial growth.
The deal, which was formalized yesterday at the Ministry of Steel Development headquarters in Abuja, will lead to the construction of a modern steel plant in Ewekoro, Ogun State.
According to a statement by the ministry, the project will be implemented in three phases, with the first phase expected to commence production in 2026.
Minister of Steel Development, Prince Shuaibu Abubakar Audu, signed the agreement on behalf of the Federal Government, while Mr. Li, President of Inner Galaxy Group and representative of Stellar Steel Company Limited, led the company’s delegation.
Audu said the partnership aligns with the Federal Government’s vision of achieving 10 million tonnes of crude steel production annually by 2030, describing it as a “major step toward industrial self-reliance and economic diversification.”
He noted that the ministry will provide policy and infrastructure support, including the inclusion of Stellar Steel’s logistics projects in the National Infrastructure Plan and facilitation of fiscal incentives to support operations.
The Minister outlined the major highlights of the agreement, which include:
- Developing a localized iron ore supply chain to reduce import dependence and save over $1 billion in foreign exchange annually.
- Creating more than 2,000 direct and 20,000 indirect jobs across the steel value chain.
- Promoting green steel production through energy-efficient and environmentally sustainable technologies.
- Strengthening Nigeria’s position as a leading steel manufacturing hub in West Africa.
Audu added that Stellar Steel will, in return, prioritize local recruitment and capacity building, collaborating with Nigerian universities to enhance technical and managerial expertise in the steel sector.
“This strategic cooperation marks a new era for Nigeria’s steel industry and underscores the government’s commitment to sustainable industrial growth and economic transformation,” the Minister stated.
Responding, Mr. Li assured that Stellar Steel Company Limited would uphold all agreements reached and ensure timely completion of the project. He also pledged that the company would adhere strictly to global safety and environmental standards throughout the project’s execution.
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