The Federal Government has vowed to continue to encourage the development and sustainability of oil and gas local content production.
The Minister of Petroleum Resources (Oil), Heineken Lokpobiri, stated this on Thursday during the launch of Monarch Alloys 33LPE and concrete weight coating facility in the Ikorodu area of Lagos State.
According to Lokpobiri, the country will keep encouraging local production of oil pipelines to patronise local producers.
While acknowledging that pipelines are very important to the oil and gas industry, he said one of the reasons the NCDMB was created was to enable Nigerian companies to build capacity to service the industry.
He expressed happiness that for the past 15 years, NcDmb has laid a solid foundation, for companies like this to spring up.
He expressing concerns, however, over its sustainability.
“I’m very happy that companies like this are now springing up in Nigeria.
But what is more important is not what all of us are getting here to witness. What is more important is the sustainability of this company. If this company is not patronised by companies in the oil and gas industry, this company will die naturally.
“In the past, Nigeria used to be a dumping ground for companies importing these pipes from China. I also do know that a couple of companies like this were set up and they found it very difficult to survive because we allowed dumping to take place.
“Let me take this opportunity to say today that under the leadership of President Bola Tinubu, dumping will be no more. We have a duty to support our industries to grow and render the services that are relevant to the survival and sustainability of the oil and gas industry,” the minister said.
Speaking to the NCDMB team, he noted, “I’m very happy that I see the entire NCDMB family seated here. The ES is here. I saw all the directors who are here. Let me say that the pipes the industry needs are right here in Monarch Alloys Limited. And what I see and the complaints I get are that, instead of implementing a local content act, what is being done is that waivers are being given for Chinese products to be brought in, thereby killing companies like this one. That’s why I’m saying it’s very important for us to gather here today.”
“I want to see how, in the next year, this company will grow. You know, in its capacity to be able to provide services, not just to Nigeria, but the entire African continent. The whole of Africa is looking up to Nigeria for services, for knowledge sharing. Whatever you think about the oil and gas industry, the rest of Africa is looking up to Nigeria. And for Nigeria, one of the most fundamental problems we have is the integrity of our pipelines.”
The oil minister maintained that Nigeria can easily produce 3 million barrels of oil per day, but the challenge is that the pipelines are old.
“Some of those pipelines are 60 years or more. I’m not even 60, so some of them are even older than me. So they have already outlived their lifespan. And it’s a very easy fraction, that gives another opportunity for companies in the midstream and downstream to also make relevant investments in that sector,” he posited.
Lokpobiri added that the Federal Government will continue to support industries like Monarch Alloys to grow so that it can retain their value in-country.
“Any pipe we import from any country, we are creating and sustaining jobs elsewhere. Any pipe we buy from this company and other companies like this, we are retaining jobs in Nigeria, and we are retaining value in Nigeria. That is why as the Chairman of the Governing Council of the NCDMB, I will have a problem with the board if I hear that instead of patronising Nigerian companies, waivers are being given.
“If we allow dumping to persist, no more new investment will come in. So, ladies and gentlemen, I would like to come here in the next year to see how this company has grown and how we have also supported them using local content. I’m very happy that the role of local content in the board is publicly acknowledged,” he submitted.
In his speech, the Chief Executive Officer of Monarch Alloys, Atul Chaudhary, disclosed that the company is ending steel importation into Nigeria.
He said the company has grown steadily to become one of the leading producers of steel today in the country.
“Before the time we set up in the country, we used to import steel. The country used to import all the iron rods in the country. But today, because of local production, we don’t need to import anything,” he said.
Chaudhary noted that the firm was able to set up the factory in less than two years, from May 2023 to January 25.
He said the company is looking forward to more investments in the country, saying it has an annual capacity of 2 million square meters per annum and can close up to 500 pipes per day.
The Executive Secretary of the NCDMB, Felix Ogbe, said the facility represents another step forward in the country’s ability to provide advanced pipeline infrastructure which is designed, built, and completed here in Nigeria.
According to him, the facility is a testament to what is possible when private enterprise aligns with national vision, and when local capacity is not only developed but demonstrated with confidence.
“At the Nigerian Content Development and Monitoring Board, we are particularly proud of this development because it speaks directly to the mandate of the Board. It strengthens our value chain, deepens local participation, and affirms our collective commitment to building an oil and gas industry driven by Nigerians,” Ogbe said.
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