FG bans importation of oil pipelines to boost local manufacturing
The Federal Government of Nigeria has announced a ban on the importation of oil pipelines in a move aimed at encouraging domestic manufacturing and strengthening the country’s oil and gas sector.
Minister of Petroleum Resources (Oil), Heineken Lokpobiri, disclosed this on Friday while inaugurating a new pipeline coating facility built by Monarch Alloys in Ikorodu, Lagos State. He stressed the need for Nigeria to end its reliance on foreign-made pipelines, particularly from China, when competent local alternatives are available.
“We are ending the era of dumping foreign pipes in Nigeria,” Lokpobiri said, adding that buying from local manufacturers would create jobs, stimulate economic growth, and retain wealth within the country.
He also directed the Nigerian Content Development and Monitoring Board (NCDMB) to immediately stop granting waivers for the importation of pipelines.
The minister lamented that Nigeria’s aspiration to produce up to 3 million barrels of oil daily is being hampered by outdated pipelines, some of which are over 60 years old. He called for increased investments in the midstream and downstream sectors and assured that the government would support companies contributing to the modernization of the nation’s oil infrastructure.
Atul Chaudhary, Chief Executive Officer of Monarch Alloys, revealed that the company has started manufacturing pipes locally, eliminating the need for imports. He stated that the facility, built in under two years, can produce up to 500 pipes daily and has the capacity to deliver 2 million square meters of coating annually.
Also speaking at the event, Executive Secretary of the NCDMB, Felix Ogbe, described the new facility as a milestone in Nigeria’s journey towards self-sufficiency in the oil and gas sector. He emphasized that the success of Monarch Alloys demonstrates the potential of private investments in supporting national development goals.
“We are proud that this facility was designed, built, and completed in Nigeria,” Ogbe said. “It proves our capacity and strengthens the value chain in the oil and gas industry.”
