FG Announces Comprehensive Insurance Coverage for Ongoing Steel Projects

Kasim Sumaina in Abuja

The federal government through the newly created Ministry of Steel Development has taken steps towards rejuvenating the nation’s steel sector by announcing a comprehensive insurance coverage for all ongoing steel projects within the country.

The Minister of Steel Development, Shuaibu Abubakar Audu, made the declaration yesterday, during a meeting with key agencies under the Ministry in Abuja.

The projects that would benefit from the insurance coverage are the Ajaokuta Steel Company Limited; National Iron -Ore Mining Company, Itakpe; National Steel Raw Materials Exploration Agency; Metalurgical Training Institute and the National Metallurgical Development Center, Jos.

During the meeting with the Directors-General of agencies, Audu explained that the deliberate policy of the present administration to introduce insurance coverage for steel projects was a to mitigate risks and uncertainties inherent in large scale developmental endeavours.

He further opined that by providing the insurance coverage, the government aims to foster an environment that was conducive to attracting investments into the steel sector, secure financing and expediting the successful completion of various steel related initiatives across the country.

Audu noted that to ensure a structured successful implementation of the policy, the Ministry would outline a comprehensive two- year activation plan- adding that, “the strategic plan is designed to catalyse the revival of all steel associated interventions: Which underscored   a steadfast commitment to achieving tangible progress within s stipulated timeframe.”

Continuing, he however, stressed that the journey towards revitalising the steel sector was beyond insurance coverage, noting that, ”the government has devised a comprehensive overhauling strategy to tackle the multi- faceted challenges impeding the sector’s growth.

“Central to this strategy is the optimisation of skilled labour and enhancing security measures to ensure safe and productive working atmosphere.”

While citing other indices for solutions, Audu listed them to include the rehabilitation of the rail infrastructure connecting the Itakpe and Ajaokuta Steel Complexes; a functioning rail network for transportation of raw materials a d finished products.

This, the Minister hinted has the potential to significantly boost the operational efficiency of the complexes, thereby positively influencing the entire street value chain.