Nigeria’s Steel Sector Gets $2.5 Billion Boost as Nigerian, Chinese Firms Sign Cooperation Deal

Nigeria’s Steel Sector Gets $2.5 Billion Boost as Nigerian, Chinese Firms Sign Cooperation Deal

In a significant stride toward revitalizing Nigeria’s steel industry, indigenous firm Chart & Capstone Integrated Ltd has signed a landmark financial and technical cooperation agreement with Chinese conglomerate Sinomach-HE to develop a multi-billion-dollar steel production plant in Nigeria.

The project, valued at $2.5 billion, will operate across Kogi and Delta States and is set to significantly reduce Nigeria’s reliance on steel imports by processing locally sourced iron ore into finished steel products.

The agreement was formally signed on April 14, 2025, at Sinomach’s headquarters in Deyang, Sichuan Province, China. Signatories to the deal included Chief Immanuel Abel Edijala, Chairman/CEO of Chart & Capstone, and Lou Xiangdong, Chief of Sinomach-HE’s Chengdu Representative Office.

Dignitaries present at the signing ceremony included Joseph Tegbe, Director General of the Nigeria-China Strategic Partnership, and Dr. Ilesanmi Abiodun Bakare, Acting Consul General of Nigeria in Shanghai, underscoring the high-level diplomatic and economic significance of the deal.

The steel plant project is expected to reach financial close and commence groundbreaking in Q4 2025, with equipment installation projected to begin in early 2026.

According to project stakeholders, the initiative will not only boost domestic steel production but will also create thousands of jobs, stimulate infrastructure development, and support long-term industrial growth in Nigeria.

The partnership represents another milestone in the deepening economic cooperation between Nigeria and China, with both countries emphasizing industrialization, job creation, and technology transfer as shared priorities for development.

This development positions Nigeria to harness its vast iron ore reserves more effectively while strengthening its manufacturing base and global competitiveness.