FG Bans Importation of Oil Pipelines

The Federal Government has imposed a ban on the importation of oil pipelines into Nigeria, according to Heineken Lokpobiri, the Minister of Petroleum Resources (Oil).

This announcement was made on Thursday during the launch of Monarch Alloys 33LPE and concrete weight coating facility in Ikorodu, Lagos State.

Lokpobiri emphasized the need for the country to cease importing pipelines in order to support local producers. He instructed the Nigerian Content Development and Monitoring Board (NCDMB) to stop issuing waivers for the importation of Chinese pipelines.

While acknowledging the importance of pipelines in the oil and gas industry, Lokpobiri underscored that the establishment of the NCDMB was to help Nigerian companies build capacity and serve the sector. He expressed optimism about Monarch Alloys’ progress over the past 15 years, but also voiced concerns about its future sustainability.

Lokpobiri stressed that the industry must stop relying on imported pipes from China and affirmed that under President Bola Tinubu’s leadership, this practice would end. He emphasized the importance of supporting local industries to ensure their growth and the long-term success of Nigeria’s oil and gas sector.

Lokpobiri further criticized the practice of waivers being granted for Chinese imports, which he argued undermines the success of local companies like Monarch Alloys. He expressed confidence that, with the support of Nigerian companies, the oil and gas industry in Nigeria can continue to thrive, contributing not only to the country but to the entire African continent.

The minister also pointed out that while Nigeria has the potential to produce 3 million barrels of oil per day, the country faces challenges due to the aging and deteriorating state of its pipelines, some of which are over 60 years old.

Lokpobiri reiterated that the Federal Government would continue to support companies like Monarch Alloys to ensure that the value generated within Nigeria stays within the country, thus preserving jobs and strengthening the economy.

In his speech, Atul Chaudhary, CEO of Monarch Alloys, revealed that the company had eliminated the need for steel imports, having grown into one of the leading producers of steel in the country. He also discussed the company’s progress in setting up the factory in less than two years and its impressive annual production capacity of 2 million square meters.

Felix Ogbe, the Executive Secretary of NCDMB, highlighted the significance of the facility, noting that it represents a milestone in the country’s ability to design, build, and complete advanced pipeline infrastructure locally. He praised the collaboration between private enterprise and national vision in advancing local content in the oil and gas industry.