The federal government has prohibited the issuance of waivers for importing threaded pipes used in Nigeria’s oil and gas industry.
Heineken Lokpobiri, minister of state for petroleum resources (oil), gave this directive to the Nigerian Content Development and Monitoring Board (NCDMB) at the commissioning of Monarch Alloys Limited’s concrete weight coating plant in Lagos on Thursday.
The new facility has an annual external coating capacity of two million square metres and an internal coating capacity of one million square metres. It supports both onshore and offshore pipeline requirements, where longer lines and deeper sea beds require advanced corrosion protection.
At the event, Lokpobiri emphasised that investments like Monarch Alloys must receive local patronage to encourage similar projects in the sector. He stressed the importance of the local content policy to Nigeria’s economy and assured that the government would continue supporting manufacturers to create jobs.
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“We would not allow dumping of pipes or such things anymore; we have a duty to support our industries to grow,” Lokpobiri stated.
John Enoh, Minister of State for Industry, Trade and Investment, praised Monarch Alloys for reducing Nigeria’s dependence on imports and expanding the value chain. He noted that the investment aligns with his ministry’s agenda to promote value addition, job creation and economic partnerships.
“The investment also serves as a model for continuous collaboration between the private sector and government and creates opportunities,” Enoh said.
He added that Nigeria’s economy would only grow through industrialisation, promising the government would continue providing an enabling environment for investments.
Felix Ogbe, executive secretary of NCDMB, commended the investment, noting that it fulfils the board’s mandate. “This means companies like Monarch Alloys are not just contributing to industrialisation but are also positioned to benefit directly from local contracting opportunities,” he said.
Ogbe explained that sourcing critical elements like pipeline coating from abroad drains both opportunity and value from Nigeria’s economy. However, this situation has begun changing with NCDMB’s implementation of the Nigerian Oil and Gas Industry Content Development Act.
The NCDMB boss added 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.”
He highlighted significant economic benefits, including job creation, skills development, and stimulation of local manufacturing and logistics, while challenging industry stakeholders, especially operating companies, to deepen collaboration with local players.
Atul Chaudhary, managing director of Monarch Alloys, confirmed the company completed the investment within 18 months and announced plans to establish a longitudinal submerged arc welding (LSAW) pipe mill in Nigeria to meet oil and gas industry needs.
