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

The Minister of Steel Development, Prince 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.

This was disclosed in a statement 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, 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 cutting down steel imports, while also contributing to economic diversification away from oil and gas.

According to the minister, the facility will not only enhance industrial growth but also generate over 3,500 direct and indirect jobs, thereby contributing to the administration’s employment drive and economic development agenda.

“This groundbreaking represents a crucial milestone in our journey to revive Nigeria’s steel industry.

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 Stellar Steel plant, which will sit on over 100 hectares of land once completed, 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 said.

He also reaffirmed the government’s commitment to supporting investors in the steel sector 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, a facility with an estimated annual turnover of $100m.

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.

“As you are 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,” Audu said.

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, as he expects to commission the completed plant by next April 2026.

He lauded the company’s track record in Nigeria, which includes building the largest lithium factory in Nasarawa State and a $150m battery-recycling facility in Aba, Abia State.

“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.

“Under President Bola Ahmed Tinubu’s Renewed Hope Agenda, we are determined to build a $1tn 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,” Audu said.

Vice President of the Inner Galaxy Group, Mr Jackie Shan, who interpreted on behalf of its Chairman, Mr Li Chuang, who was also present, thanked the Ministry of Steel Development, under the leadership of the minister, for striving for the revitalisation of the steel sector in the country.