China’s Stellar Steel to invest $450 million in new mill in Nigeria’s Ogun state

OGUN STATE, Nigeria (MNTV) — China’s Stellar Steel Company Limited is investing $450 million in the construction of a steel mill in Nigeria’s Ogun state, Governor Prince Dapo Abiodun announced Monday.

The project, implemented by subsidiaries of China’s Galaxy Group and RSIN Group from Fuzhou, is expected to become operational by mid-2026. Once completed, the facility will produce hot-rolled coils, steel doors, and gas cylinders, helping reduce Nigeria’s reliance on imported steel products.

During a meeting with Governor Abiodun, RSIN Group Vice Chairman Yu Xiaotang said construction was progressing as planned.

“We have completed all levelling and foundation work. This is our largest project in Nigeria, and we plan to launch next year,” he said.

A Stellar Steel representative described Ogun as a strategic industrial hub and encouraged other Chinese investors, particularly from Fujian province, to explore opportunities in the region.

Governor Abiodun noted that Ogun recently signed a partnership with China’s Shandong province to promote joint industrial ventures.

He said the state government would continue to support investors through simplified licensing, faster property certification, and possible tax incentives.

Analysts say the investment reflects a broader trend of Chinese steel producers expanding overseas amid tighter domestic production limits and growing trade restrictions.

By establishing plants abroad, Chinese firms can reduce logistics costs and avoid tariffs imposed by markets such as the United States and the European Union.