Revitalizing Nigeria’s steel sector and significantly curbing its reliance on foreign imports, the Federal Government, in collaboration with the Inner Galaxy Group, has officially commenced the construction of the $400 million Stellar Steel Plant in Ogun State. The groundbreaking ceremony, presided over by the Minister of Steel Development, Prince Shuaibu Audu, signals a strong commitment to bolstering local manufacturing, conserving valuable foreign exchange, and diversifying the nation’s economy beyond oil and gas.
Speaking at the event, Minister Audu emphasized the pivotal role of the Stellar Steel Plant in achieving the government’s objectives. “This groundbreaking represents a crucial milestone in our journey to revive Nigeria’s steel industry,” he stated. “The completion of this plant will reduce our reliance on foreign steel, conserve foreign exchange, and position Nigeria as a key player in the regional and global steel market.”
The sprawling facility, situated on over 100 hectares of land, is projected to produce hot-rolled coil, a critical raw material indispensable for a wide array of industries, including construction, automotive, and general manufacturing. By establishing a robust domestic production capability for this essential component, Nigeria aims to significantly diminish its staggering $4 billion annual expenditure on steel imports.
Beyond the substantial economic benefits of reduced imports and enhanced foreign exchange reserves, the Stellar Steel Plant is also anticipated to be a significant catalyst for job creation. According to the Minister, the project is expected to generate over 3,500 direct and indirect employment opportunities for Nigerians, directly aligning with the current administration’s focus on economic development and job growth.
“The Stellar Steel plant…is expected to produce hot-rolled coil, reducing Nigeria’s $4 billion annual steel import bill, strengthening the nation’s foreign-exchange position, growing and diversifying the economy away from oil & gas and also creating over 3,500 direct and indirect jobs for Nigerians,” Audu elaborated.
This significant development follows closely on the heels of the recent commissioning of the African Industries Group’s Galvanised Steel Plant in Lagos, a facility boasting an estimated annual turnover of $100 million. These concurrent events underscore the government’s proactive engagement with private sector players to stimulate growth within the steel industry.
Minister Audu expressed strong confidence in the Inner Galaxy Group’s capacity to successfully complete the ambitious Stellar Steel Plant project, setting a target for commissioning by April 2026. He lauded the company’s impressive track record in Nigeria, which includes the establishment of the largest lithium factory in Nasarawa State and a $150 million battery-recycling facility in Aba, Abia State.
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“I have personally come to support the Inner Galaxy Group and the Stellar Steel Team for this $400m investment in the steel sector. It is a very impressive project, and I have come to perform the groundbreaking ceremony. I look forward to coming for the commissioning once it is ready in April 2026, by God’s grace,” the Minister affirmed.
Highlighting the broader vision, Audu connected the project to President Bola Ahmed Tinubu’s “Renewed Hope Agenda” and the ambition to build a $1 trillion economy by 2030. “Steel is the backbone of industrialisation; from roads and power stations to defence hardware — they all need steel, and this particular project exemplifies the public-private partnership required to compete in Africa and globally,” he asserted.
Mr. Jackie Shan, Vice President of the Inner Galaxy Group, conveyed the Chairman, Mr. Li Chuang’s gratitude to the Ministry of Steel Development for its commitment to revitalizing the sector. This collaborative effort between the government and private enterprise underscores a shared vision for a more industrialized and economically self-reliant Nigeria. The Stellar Steel Plant stands as a tangible symbol of this ambition, promising to reshape the landscape of Nigeria’s steel industry and contribute significantly to its economic future.
