FG Bans Importation Of Oil Pipelines

The Federal Government has announced a ban on the importation of oil pipelines into Nigeria.

The Minister of Petroleum Resources (Oil), Heineken Lokpobiri, stated this on Thursday during the launch of Monarch Alloys’ 33LPE and concrete weight coating facility in the Ikorodu area of Lagos State.

According to Lokpobiri, the country must stop importing pipelines in order to support local manufacturers.

Lokpobiri directed the Nigerian Content Development and Monitoring Board not to grant waivers for the importation of Chinese pipelines any longer.

“I’m very happy that companies like this are now springing up in Nigeria.

However, what matters most is not just what we are all gathered here to witness today. The key issue is the sustainability of this company. If companies in the oil and gas industry do not patronise it, the company will naturally cease to exist.

“In the past, Nigeria used to be a dumping ground for companies importing these pipes from China. I also do know that a couple of companies like this were set up and they found it very difficult to survive because we allowed dumping to take place.

“Let me take this opportunity to say today that under the leadership of President Bola Tinubu, dumping will be no more. We have a duty to support our industries to grow and render the services that are relevant to the survival and sustainability of the oil and gas industry,” the minister said.

Speaking to the NCDMB team, he noted,

“I’m very happy that I see the entire NCDMB family seated here. The ES is here. I saw all the directors who are here. Let me use the opportunity to publicly say that, look, there should be no more waivers to bring in Chinese pipes.

“The pipes the industry needs are right here in Monarch Alloys Limited. And what I see and the complaints I get is that, instead of implementing a local content act, what is being done is that waivers are being given for Chinese products to be brought in, thereby killing companies like this one. That’s why I’m saying it’s very important for us to gather here today.

“I want to see how, in the next year, this company will grow. You know, in its capacity to be able to provide services, not just to Nigeria, but the entire African continent. The whole of Africa is looking up to Nigeria for services, for knowledge sharing. Whatever you think about the oil and gas industry, the rest of Africa is looking up to Nigeria. And for Nigeria, one of the most fundamental problems we have is the integrity of our pipelines.”

“Some of those pipelines are 60 years or more. I’m not even 60, so some of them are even older than me. So they have already outlived their lifespan. And it’s a very easy fraction, that gives another opportunity for companies in the midstream and downstream to also make relevant investments in that sector,” he posited.

Lokpobiri added that the Federal Government will continue to support industries like Monarch Alloys to grow so that it can retain their value in-country.

“Any pipe we import from any country, we are creating and sustaining jobs elsewhere. Any pipe we buy from this company and other companies like this, we are retaining jobs in Nigeria, and we are retaining value in Nigeria. That is why as the Chairman of the Governing Council of the NCDMB, I will have a problem with the board if I hear that instead of patronising Nigerian companies, waivers are being given.

“You may not like my face, but I will continue to fight for this industry. As far as President Tinubu, in his own magnanimity, retains me as the minister in charge of oil, and as chairman of the governing council of the NCDMB, I will continue to fight for companies like this so that more companies like this can grow and service the industry in Nigeria. If cautious efforts are not made, no investment will come in.

“If we allow dumping to persist, no more new investment will come in. So, ladies and gentlemen, I would like to come here in the next year to see how this company has grown and how we have also supported them using local content. I’m very happy that the role of local content in the board is publicly acknowledged,” he submitted.

In his address, the Chief Executive Officer of Monarch Alloys, Atul Chaudhary, announced that the company is putting an end to steel importation into Nigeria.

He noted that Monarch Alloys has experienced consistent growth over the years and has now emerged as one of the foremost steel producers in the country.

“Before the time we set up in the country, we used to import steel. The country used to import all the iron rods in the country. But today, because of local production, we don’t need to import anything,” he said.

Chaudhary highlighted that the company successfully established the factory in under two years, from May 2023 to January 25.

He stated that Monarch Alloys is aiming for further investments in Nigeria, adding that the facility has an annual capacity of 2 million square meters and is capable of closing up to 500 pipes daily.

The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Felix Ogbe, described the facility as a significant advancement in Nigeria’s capacity to deliver sophisticated pipeline infrastructure that is fully designed, constructed, and completed within the country.

He emphasized that the facility stands as proof of what can be achieved when private sector initiatives align with national goals and when local capacity is not only built but confidently showcased.

“At the Nigerian Content Development and Monitoring Board, we are particularly proud of this development because it speaks directly to the mandate of the Board. It strengthens our value chain, deepens local participation, and affirms our collective commitment to building an oil and gas industry driven by Nigerians,” Ogbe said.