In order to mitigate risks and uncertainties inherent in large scale developmental endeavors, the Federal Government will introduce insurance coverage for sector steel projects across the country; the Minister for Steel Development, Prince Shuaibu Abubakar Audu has said, adding that the measure is one of the deliberate policies of the present administration to sustain the development of the steel industry.
According to a statement from the Ministry, signed by Alaba Balogun, Head, Press and Public Relations, the minister made the disclosure in Abuja, during a crucial meeting with key agencies under the Ministry of Steel Development. The agencies include Ajaokuta Steel Company Limited (ASCO), National Iron Ore Mining Company (NIOMCO), Itakpe, National Steel Raw Materials Exploration Agency (NSRMEA), Metallurgical Training Institute (MTI) and the National Metallurgical Development Center, (NMDC) Jos.
‘The minister explained that by providing insurance coverage for projects, 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,’ the statement said.
To this end, Prince 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 catalyze the revival of all steel associated interventions, which underscored a steadfast commitment to achieving tangible progress within a stipulated time frame.
While saying that the minister explained that the journey toward revitalizing the steel sector is beyond insurance coverage, Alaba quoted the minister as stating that ‘government has devised a comprehensive overhauling strategy to tackle the multifaceted challenges impeeding the sector’s growth,’ adding that the optimization of skilled labour and enhancing security measures to ensure safe and productive working atmosphere is a central to the strategies adopted.
The statement said that the minister cited other indices for solutions, including the rehabilitation of the rail infrastructure connecting NIOMCO and ASCO and a functioning rail network for transportation of raw materials and finished products. This, the minister noted, has the potential to significantly boosting the operational efficiency of the complexes, thereby positively influencing the entire street value chain.
