By Muhammad Mamman
The Nigerian Government has signed a landmark $400 million agreement with Stellar Steel, aimed at revitalising the nation’s steel industry and boosting local production capacity.
The signing ceremony, which took place on Tuesday in Abuja, was attended by key government officials, including representatives from the Ministry of Industry, Trade and Investment, as well as executives from Stellar Steel. The deal is expected to strengthen domestic steel output, create jobs, and reduce the country’s reliance on imported materials.
According to government sources, the partnership will see the deployment of modern steel-making technologies, expansion of existing facilities, and investment in skills development for local workers.
“This agreement marks a turning point for Nigeria’s steel sector,” said a senior government official. “By partnering with Stellar Steel, we are taking concrete steps toward industrialisation, economic diversification, and job creation for thousands of Nigerians.”
Stellar Steel CEO, Mr. Victor Omokhafe, described the deal as “a strategic milestone” that will allow the company to scale up operations while contributing to the government’s broader industrialisation agenda.
“We are committed to leveraging cutting-edge technology and local talent to meet Nigeria’s steel demands,” Omokhafe said. “This collaboration is about building a sustainable and globally competitive steel industry.”
The project is expected to generate thousands of direct and indirect jobs, particularly in steel manufacturing, logistics, and allied sectors. Analysts say the investment could also have a positive ripple effect on infrastructure development, housing, and the construction industry nationwide.
Economic experts have welcomed the move, noting that a robust domestic steel industry is critical to reducing the country’s import dependency, saving foreign exchange, and boosting economic growth.
“Nigeria imports a significant portion of the steel it consumes,” said Dr. Funke Adeyemi, an industrial economist. “Local production not only cuts costs but also ensures supply chain stability for critical sectors like construction, transportation, and energy.”
The government has pledged continuous support for the project, including regulatory facilitation and incentives aimed at attracting further private investment in heavy industry.
With the agreement now in place, both parties have committed to an accelerated timeline for implementation, targeting full operational capacity within the next five years.
“This is more than just an investment; it is a bold step toward positioning Nigeria as a regional steel powerhouse,” the government official concluded.
