The Federal Government has reiterated its commitment to deepen local content in Nigeria’s oil and gas sector, with a promise to fully support indigenous manufacturers and halt the importation of oil and gas pipelines into the country.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made this declaration on Thursday at the launch of Monarch Alloys’ 33LPE and concrete weight coating facility in Ikorodu, Lagos State.
Lokpobiri stressed that the government would continue to patronise local producers, adding that Nigeria can no longer serve as a dumping ground for imported pipes.
“I’m very happy that companies like this are now springing up in Nigeria. But what is more important is the sustainability of this company. If this company is not patronised by companies in the oil and gas industry, this company will die naturally,” he stated.
“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 did not mince words in directing the Nigerian Content Development and Monitoring Board to ensure strict enforcement of the local content law.
“I saw all the directors who are here. Let me say that the pipes the industry needs are right here in Monarch Alloys Limited. And what I see and the complaints I get are 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.”
Lokpobiri also expressed concern over Nigeria’s ageing oil pipeline infrastructure, noting that some pipelines are over 60 years old.
“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. That gives another opportunity for companies in the midstream and downstream to also make relevant investments in that sector.”
The minister warned that without sustained support, local industries would struggle to survive.
“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.”
In his remarks, the Chief Executive Officer of Monarch Alloys, Atul Chaudhary, revealed that the company’s operations have ended the importation of steel pipes into Nigeria.
“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.
The Executive Secretary of the NCDMB, Felix Ogbe, praised the new facility as a milestone in Nigeria’s industrial development.
“This facility is a testament to what is possible when private enterprise aligns with national vision, and when local capacity is not only developed but demonstrated with confidence,” Ogbe said.
He added that Monarch Alloys’ success demonstrates the capacity of Nigerian industries to support and sustain the nation’s oil and gas infrastructure.
