By Gabriel Ewepu
IN a bid to strengthen and upscale steel production, the Federal Ministry of Steel Development, and Stellar Steel Company Limited, yesterday, signed a Joint Strategic Cooperation Declaration of $400 million to construct a modern Steel Plant in Ewekoro, Ogun State.
This was made known in a statement issued by the Ministry, explaining that the project will be developed in three phases, with the first phase expected to begin production by 2026.
The Minister of Steel Development Prince Shuaibu Abubakar Audu, signed the agreement when he hosted Mr. Li, President of Inner Galaxy Group and other members of the Stellar Steel Company Limited at the Ministry’s Headquarters in Abuja.
According to Audu, 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.
The Minister further said that the Federal Ministry of Steel Development will facilitate policy and infrastructure support, including inclusion of Stellar Steel’s logistics projects in the National Infrastructure Plan and access to available fiscal incentives. Highlights of the cooperation include; development of a localized iron ore supply chain to reduce import dependence and save over $1 billion 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 of Nigeria’s position as a regional steel manufacturing hub in West Africa.
Meanwhile, the Minister made it known that in return, Stellar Steel will prioritize local recruitment and training, partnering with Nigerian universities to build technical and managerial expertise in steel production.
He also emphasized that this strategic cooperation marks a new era for Nigeria’s steel industry and demonstrates the government’s commitment to sustainable industrial growth and economic transformation.
In his remarks, the leader of the delegation, Mr. Li assured the Minister that Stellar Steel Company Limited will respect all agreements reached and will ensure the completion of the project in record time, and assured that all safety standards will be observed.
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