The agreement, one of the biggest foreign direct investment (FDI) 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.
In a statement by the ministry’s Public Information Officer, Ijomah Opia, the signing was conducted by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, and Mr. Li, President of Inner Galaxy Group, on behalf of Stellar Steel.
According to the statement, Stellar Steel—backed by Chinese parent groups Galaxy Group and RSIN Group, both headquartered in Fuzhou, Fujian Province, China—has committed approximately $450 million to the Ogun project, which is scheduled to commence operations by mid-2026.
Minister Audu said the collaboration aligns with the Federal Government’s target of achieving 10 million tonnes of crude steel production annually by 2030, marking a critical step toward industrial self-reliance and economic diversification.
He explained that the Ministry will facilitate policy and infrastructure support for the project, including the inclusion of Stellar Steel’s logistics operations in the National Infrastructure Plan and access to fiscal incentives.
The agreement is expected to:
- Develop a localised iron ore supply chain to cut import dependence and save over $1 billion in foreign exchange yearly.
- Create over 2,000 direct and 20,000 indirect jobs across the steel value chain.
- Promote green steel production using clean, energy-efficient technology.
- Strengthen Nigeria’s position as a regional steel hub in West Africa.
Audu emphasised that Stellar Steel will prioritise local recruitment and training, working with Nigerian universities to develop technical and managerial expertise in steel production.
In his response, Mr. Li pledged that Stellar Steel would respect all agreements, ensure timely project completion, and maintain international safety and environmental standards.
Li, accompanied by top executives from RSIN Group and Inner Galaxy Group, also recalled that the Minister had earlier performed the groundbreaking ceremony of the Ogun plant in April 2025.
The partnership, both sides agreed, will strengthen Nigeria’s industrial base, promote technology transfer, and reduce the country’s dependence on imported steel products.
Despite possessing vast iron ore reserves, Nigeria still imports more than $4 billion worth of steel annually. The Federal Government hopes this project will help fill the void left by the long-idle Ajaokuta Steel Complex and mark a new era in the nation’s industrial development.
