Mkpoikana Udoma
Port Harcourt — In a move to plug capital flight and boost local manufacturing, the Federal Government has outlawed the issuance of waivers for the importation of threaded pipes, a key component in oil and gas operations that drains Nigeria’s foreign reserves by over $1 billion annually.
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, who made the announcement at the commissioning of Monarch Alloys Limited’s coating plant in Lagos, said Nigeria has no justification for importing pipes when local capacity is being developed.
The Minister stressed that investments like Monarch Alloys must be patronized to stimulate industrialization, reduce import dependency, and create jobs for Nigerians.
“Let me state clearly today: no more waivers for the importation of threaded pipes into this country. We have a duty to support our industries to grow. We will not allow dumping of pipes or such things anymore.
“It makes no sense for Nigeria to continue spending hard-earned forex on products we now have the capacity to produce locally. This is why we are stopping waivers immediately.”
The directive was handed to the Nigerian Content Development and Monitoring Board, NCDMB, which oversees compliance with the Nigerian Oil and Gas Industry Content Development Act.
The newly commissioned plant boasts an annual external coating capacity of two million square meters and one million square meters for internal coating. It is designed to meet the needs of both onshore and offshore pipeline projects, including high-spec applications that demand advanced corrosion protection.
Also speaking, the Minister of State for Industry, Trade and Investment, Senator John Owan Enoh, also hailed the facility as a transformative development.
“This investment is a strong testament to Nigeria’s industrialization drive. It reduces our dependence on imports, creates jobs, and expands the value chain,” he said.
He described Monarch Alloys as a model for public-private collaboration and pledged continued government support to ensure a thriving investment environment.
For his part, NCDMB Executive Secretary, Engr. Felix Omatsola Ogbe, praised the initiative as a strategic win for local content, warning that sourcing key elements like pipeline coatings from abroad saps the economy of opportunities and value.
“This facility is aligned with the Nigerian Content Equipment Certificate scheme under the NOGICD Act. It gives companies like Monarch Alloys priority consideration during technical bid evaluations in the oil and gas industry.
“That era must end. This facility introduces high-performance 3LPE and concrete weight coating capability into Nigeria, keeping technical and economic value within our borders.”
“The economic implications are significant including job creation, skills development, stimulation of local manufacturing, and logistics. Monarch Alloys is not just meeting a sectoral need; it is contributing to national development,” Ogbe added, urging operators in the industry to prioritize partnerships with local manufacturers.
Earlier, the Managing Director of Monarch Alloys Limited, Mr. Atul Chaudhary, revealed that the plant was completed in just 18 months.
He also announced plans to establish a Longitudinal Submerged Arc Welding, LSAW, pipe mill in Nigeria to meet growing demands in the oil and gas sector.
“We are committed to Nigeria and its industrial future. This is just the beginning.”
