The Federal Government ban the importation of oil pipelines to encourage domestic manufacturing.
Heineken Lokpobiri, the Minister of Petroleum Resources (Oil), announced the prohibition while inaugurating a new pipeline coating facility by Monarch Alloys in Ikorodu, Lagos.
He mentioned that Nigeria should cease relying on pipes manufactured abroad, particularly from China, when there are competent domestic options available. Additionally, he instructed the Nigerian Content Development and Monitoring Board (NCDMB) to halt the granting of waivers for importing these products.
He said, “We are ending the era of dumping foreign pipes in Nigeria.
“Buying from local companies means jobs and economic growth stay within the country.”
The minister pointed out that Nigeria is capable of producing 3 million barrels of oil daily. However, progress is being hindered by outdated pipelines, with some being over 60 years old.
He urged for increased investments in the midstream and downstream sectors, assuring government backing for companies that contribute to improving the country’s oil infrastructure.
Atul Chaudhary, the CEO of Monarch Alloys, announced that his company has begun manufacturing pipes locally, eliminating the need for imports. The factory was constructed in under two years and has the capacity to produce as many as 500 pipes daily.
He said the company is capable of producing 2 million square meters of coating each year.
Felix Ogbe, the Executive Secretary of the NCDMB, highlighted the new facility as a testament to Nigeria’s progress in cultivating local expertise. He commended the project, emphasizing that it demonstrates how private investment can align with the country’s objectives.
He said, “We are proud that this facility was designed, built and completed in Nigeria.
“It proves our capacity and strengthens the value chain in the oil and gas industry.”
