The Federal Government has announced the discontinuation of import waivers for threaded pipes used in Nigeria’s oil and gas industry, in a move aimed at protecting local manufacturers and boosting the country’s industrial capacity.
The decision was disclosed by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, during the commissioning of a new concrete weight coating plant by Monarch Alloys Limited in Ikorodu, Lagos State.
The minister stated that the government would no longer tolerate the dumping of foreign-manufactured pipes into the Nigerian market, insisting that local industries must be supported to grow. He emphasized the government’s responsibility to ensure the survival and development of indigenous companies operating within the country’s energy and manufacturing sectors.
The newly commissioned facility is designed with an annual external coating capacity of two million square meters and an internal coating capacity of one million square meters. It is capable of meeting both onshore and offshore pipeline requirements, offering advanced corrosion protection through a range of coating systems.
Also present at the commissioning was the Minister of State for Industry, Trade and Investment, John Owan Enoh, who commended the private sector investment and described it as a welcome development that aligns with the government’s economic objectives. He noted that encouraging such initiatives would create jobs, enhance productivity, and contribute to national growth.
The Executive Secretary of the Nigerian Content Development and Monitoring Board, Felix Omatsola Ogbe, praised the development of the plant, saying it reflects the goals of promoting Nigerian content in the oil and gas sector. He explained that companies that establish manufacturing operations within Nigeria are given preference in technical bid evaluations and procurement processes.
Ogbe added that local production of key materials like pipe coatings would help retain economic value in the country, stimulate skill development, generate employment, and promote domestic logistics and supply chain activities. He called on more operators in the sector to partner with local firms to deepen industrial development.
The Managing Director of Monarch Alloys Limited, Atul Chaudhary, disclosed that the plant was completed within 18 months and revealed the company’s plan to establish a Longitudinal Submerged Arc Welded (LSAW) pipe mill in Nigeria. He said the new mill would further enhance the company’s capacity to serve the oil and gas sector with locally produced solutions.
This policy decision is expected to further strengthen local capacity and reduce reliance on imported materials in Nigeria’s energy infrastructure projects.
