The Federal Government on Wednesday announced the signing of a $400 million Joint Strategic Cooperation Agreement with Stellar Steel Company Limited to boost local steel production and reduce Nigeria’s reliance on imported steel products.

The deal, signed in Abuja between the Federal Ministry of Steel Development and Stellar Steel, marks one of the biggest foreign direct investment commitments in Nigeria’s steel sector in nearly a decade.

Backed by Chinese parent groups Galaxy Group and RSIN Group, both headquartered in Fuzhou, Fujian Province, the new plant is expected to commence operations by mid-2026.

The collaboration aligns with the Federal Government’s goal of achieving 10 million tonnes of crude steel production per annum by 2030, a major step toward industrial self-reliance and economic diversification.

Once operational, the facility will produce hot rolled coil (HRC) steel, iron steel doors, and gas cylinders.

The Minister further stated that the Federal Ministry of Steel Development 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 statement explained that the agreement will facilitate development of a localised iron ore supply chain to reduce import dependence and save over $1bn in foreign exchange annually, creation of more than 2,000 direct and 20,000 indirect jobs across the steel value chain, promotion of green steel production using clean and energy-efficient technologies, and strengthening Nigeria’s position as a regional steel manufacturing hub in West Africa.

Stellar Steel will prioritise local recruitment and training, partnering with Nigerian universities to build technical and managerial expertise in steel production.