FG signs $400m deal for new steel plant in Ogun
The Federal Government has signed a $400 million cooperation agreement with Stellar Steel Company Limited, a Chinese-backed firm, to establish a major steel plant in Ewekoro, Ogun State. The plant, expected to commence operations by mid-2026, will be built with an investment of approximately $450 million and will create over 2,000 direct and 20,000 indirect jobs.The agreement aligns with the government's goal of achieving 10 million tonnes of crude steel production per annum by 2030, reducing dependence on imported steel products, and promoting economic diversification. The project is expected to save over $1 billion in foreign exchange annually and promote green steel production using clean and energy-efficient technologies.
The Minister of Steel Development, Prince Shuaibu Abubakar Audu, stated that the government will facilitate policy and infrastructure support, including the inclusion of Stellar Steel's logistics projects in the National Infrastructure Plan and access to available fiscal incentives.
The partnership is expected to strengthen Nigeria's industrial base, create jobs, and promote technology transfer in the steel sector. The project is seen as a significant step towards reviving Nigeria's steel industry, which has been plagued by unfulfilled potential despite the country possessing one of Africa's largest iron ore deposits.
Currently, Nigeria imports over $4 billion worth of steel products annually, with local production contributing less than 10% of domestic demand. The government hopes that projects like Stellar Steel's Ewekoro plant will fill the void left by the moribund Ajaokuta Steel Complex.
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