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$400 Million Ogun Stellar Steel Plant Breaks Ground In Nigeria

factory

25 April 2025

Construction Review

factory

Apr 25, 2025

Construction Review

The Federal Government of Nigeria has taken a crucial step to slash Nigeria’s $4 billion annual steel import bill with the groundbreaking of a $400 Million Ogun Stellar Steel Plant owned by Inner Galaxy Group in Ogun State.

The Minister of Steel Development, Shuaibu Audu, who performed the official groundbreaking ceremony of the steel plant, said the move is aimed at revitalising the country’s steel sector and reducing dependence on imports.

Project name: Stellar Steel Plant

Investor: Inner Galaxy Group

Location: Ogun State, Nigeria (specific location within the state is not detailed in the provided sources but is situated on over 100 hectares of land).

Investment value: $400 million

Expected completion: April 2026

Products: Hot-rolled coil, a key raw material for industries including:

Capacity: The specific production capacity in tonnes per annum is not explicitly stated in the provided sources. However, the plant is expected to significantly reduce Nigeria’s $4 billion annual steel import bill.

Job creation: Over 3,500 direct and indirect jobs are expected to be generated.

Industrial growth: The plant is anticipated to bolster industrial development in Nigeria.

Backward Integration: Production of hot-rolled coil locally supports other manufacturing sectors.

Also read: Dangote to build Nigeria’s largest seaport in Ogun State, expands cement capacity to 18 million tons

This information was revealed in a statement that was signed by the Principal Information Officer, Ijomah Opia, on Thursday.

Located on over 100 hectares of land, the Stellar Steel Plant is expected to produce hot-rolled coil. This is a key raw material for various industries including construction, automotive, and manufacturing.

The project is anticipated to significantly bolster the nation’s foreign exchange earnings by reducing steel imports while also contributing to economic diversification away from oil and gas.

According to the minister, the facility will enhance industrial growth. It will also generate more than 3,500 direct and indirect jobs, thereby contributing to the administration’s employment drive and economic development agenda.

“This groundbreaking ceremony is a crucial milestone in our journey to revive Nigeria’s steel industry. The completion of this steel 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 Stellar Steel plant, which will sit on over 100 hectares of land once completed. Furthermore, it is expected to produce hot-rolled coil thereby reducing Nigeria’s $4 billion annual steel import bill. This will strengthen the nation’s foreign-exchange position, growing, and diversifying the economy away from oil and gas and also creating over 3,500 direct and indirect jobs for Nigerians,” Audu said.

Also read: Nigeria’s $3.3 Billion Brass Industrial Park and Methanol Complex

He also reaffirmed Nigeria’s government commitment to supporting investors in the steel secto. This is showcased through policies that encourage local production, ensure ease of doing business, and drive sustainable industrial development.

The event followed the recent commissioning of the African Industries Group’s Galvanised Steel Plant in Lagos. This is a facility with an estimated annual turnover of $100 million.

The statement noted that both events were part of the Minister’s one-week working visit to Lagos and Ogun States to engage with key private players in the steel sector.

The minister also expressed confidence in the capacity of the Inner Galaxy Group to deliver on its plans for the completion of the Stellar Steel Plant. Additionally, he expects to commission the completed plant by next April 2026.

“As you are all aware, this is one of the most robust cabinet teams that has been put together by any President since the advent of the democratic dispensation in the Fourth Republic in 1999 because President Tinubu is renowned for selecting the best hands and leaders to actualise his vision,” he added.

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