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 significant steps towards rejuvenating the country’s steel sector by announcing comprehensive insurance coverage for all ongoing steel projects in the country.

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

The projects namely: Ajaokuta Steel Company Limited; National Iron-Ore Mining Company, Itakpe;  National Steel Raw Materials Exploration Agency;  Metallurgical Training Institute and  National Metallurgical Development Centre, Jos.

During the interface with the directors-general of agencies, Prince Audu explained that the deliberate policy of the present administration to introduce insurance coverage for steel projects is a critical step to mitigate the 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 is conducive to attracting investments to the steel sector, securing financing and expediting the successful completion of various steel-related initiatives across the country.

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

Continuing, he affirmed that the journey towards the revitalisation of the steel sector is 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, Prince Audu listed them to include: the rehabilitation of the rail infrastructure connecting the Itakpe and Ajaokuta Steel complexes, and a functioning rail network for transportation of raw materials and finished products.

 The minister hinted that such indices have the potential to significantly boost the operational efficiency of the complexes, thereby positively influencing the entire street value-chain.