Recently, the Nigerian federal government and a Chinese-backed firm, Stellar Steel Company Limited, have signed an agreement to establish a modern steel plant in Ewekoro.
The subsidiary of China’s Inner Galaxy Group / RSIN Group signed a US$400 million investment deal at Ewekoro, Ogun State. The project is intended to produce crude steel with a target of 10 million tonnes annually and reduce dependence on steel imports.
The first phase is expected to begin production by mid-2026.
The steel plant marks a potentially significant shift in Nigeria’s manufacturing base. It will hopefully contribute to self-sufficiency in steel production and value-chain localisation.
More so, the economic benefits would include job creation. The steel project is expected to create thousands of direct and indirect jobs.
Steel Plant Project
Ewekoro’s natural resources, which are not limited to limestone, and its location in Ogun State, which is already industrialised, give it strategic value.
The project is to be developed in phases. First phase by mid-2026. Production capacity is targeted at 10 million tonnes of crude steel once fully operational. The federal ministry will provide infrastructure, policy support, fiscal incentives. The company plans to train Nigerian engineers and technicians in partnership with universities/technical institutes.
The Ewekoro deal addresses several shortcomings by leveraging Chinese expertise in integrated production. This deal builds on earlier efforts, including the January 2024 initial MoU with China’s Luan Steel Holding for a new plant and Ajaokuta revival. Another recent activity was the groundbreaking for the Ewekoro project.
Stellar Steel representative emphasized technology transfer and local capacity building. It stated that the project will “strengthen Nigeria’s industrial base and promote job creation across the steel ecosystem.”
President Bola Tinubu, during the August Summit said that “By 2030, Nigeria will produce 10 million tonnes of liquid steel, creating over 500,000 jobs and making steel the backbone of our industrial future.”
