The federal government has placed a ban on the issuance of waivers for the importation of threaded pipes for use in the Nigerian oil and gas industry.
Minister of state for petroleum resources (oil), Heineken Lokpobiri, stated this at the commissioning of Monarch Alloys Limited’s concrete weight coating plant in Lagos on Thursday.
The plant has an annual external coating capacity of two million square meters and an internal square metres coating capacity of one million square meters.
It also supports onshore and offshore pipeline requirements where increased line lengths and sea-bed depths demand advanced corrosion protection and deploys a full range of coating systems.
The minister directed the Nigerian Content Development and Monitoring Board (NCDMB) to ensure that the ban is implemented.
Lokpobiri said investments like that of Monarch Alloys must be patronised to encourage similar projects in the sector.
He underlined the importance of the local content policy to the nation’s economy, assuring that the federal government would continue to support manufacturers, to create jobs in the country.
“We would not allow dumping of pipes or such things anymore; we have a duty to support our industries to grow,” Lokpobiri said.
Also speaking at the event, Minister of state for industry, trade and investment, John Enoh, lauded the promoters of the new company for decreasing Nigeria’s dependence on importation and expanding the value chain.
Enoh said the investment aligned with the agenda of his ministry to promote value addition, job creation and partnership for the growth of the economy.
“The investment also serves as a model for continuous collaboration between the private sector and government and creates opportunities,” he said.
The trade minister pointed out that Nigeria’s economy would only grow through industrialisation, assuring that the government would continue to provide an enabling environment for investments to thrive.
In his remarks, executive secretary of NCDMB, Felix Ogbe, commended the investment, noting that it underscored the mandate of the board.
“This means companies like Monarch Alloys are not just contributing to industrialisation but are also positioned to benefit directly from local contracting opportunities,” the NCDMB boss said.
Ogbe said sourcing critical elements such as pipeline coating from abroad drains both opportunity and value from the Nigerian economy.
He added that the situation had started to change, with the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act by the NCDMB.
Speaking further, the NCDMB boss remarked that the new facility “brings high-performance 3LPE and concrete weight coating capability into the country, delivering not only technical excellence but economic benefit that stays within our borders”.
“The economic implications are significant, including job creation, skills development, stimulation of local manufacturing and logistics. Monarch Alloys is not only serving a sectoral need,” he added.
“It is actively contributing to national development.” He also challenged industry stakeholders, especially operating companies to deepen their collaboration with local players such as Monarch Alloys.”
In a welcome address, Atul Chaudhary, managing director of Monarch Alloys, confirmed that the company completed the investment within 18 months and plans to establish a longitudinal submerged arc welding (LSAW) pipe mill in the country to meet the needs of the oil and gas industry.
