The federal government has reaffirmed its commitment to fostering the growth and sustainability of local content production in Nigeria’s oil and gas industry.
Minister of Petroleum Resources Heineken Lokpobiri made this declaration on Thursday during the launch of Monarch Alloys’ 33LPE and concrete weight coating facility in Ikorodu, Lagos State. Lokpobiri emphasized that Nigeria will continue to encourage local production of oil pipelines and promote patronage of domestic producers.
While acknowledging the importance of pipelines to the oil and gas sector, Lokpobiri noted that one of the primary reasons for the establishment of the Nigerian Content Development and Monitoring Board (NCDMB) was to help local companies build the necessary capacity to service the industry. He expressed optimism about the 15-year foundation laid by Monarch Alloys but stressed the importance of ensuring the company’s sustainability.
“I’m very happy that companies like this are now springing up in Nigeria. But what is more important is not just what we are witnessing today but the sustainability of this company. If this company is not patronized by companies in the oil and gas industry, it will naturally fade away,” Lokpobiri stated.
He lamented that in the past, Nigeria had become a dumping ground for imported pipes from China, which had made it difficult for local companies to survive. He emphasized that, under President Bola Tinubu’s leadership, such practices would no longer be tolerated.
“Under President Tinubu’s leadership, dumping will be no more. We have a duty to support our industries to grow and provide services that are essential for the survival and sustainability of the oil and gas industry,” he said.
Lokpobiri also pointed out that instead of implementing the local content act, some companies were given waivers for importing foreign products, which he believes undermines the development of local companies. He reiterated the importance of supporting indigenous industries to promote long-term growth and job creation.
“We have a responsibility to support companies like Monarch Alloys so that they can grow, not just to serve Nigeria but the entire African continent. The whole of Africa is looking up to Nigeria for services and knowledge sharing,” he said.
The minister underscored Nigeria’s potential to produce three million barrels of oil per day but highlighted the challenges posed by aging pipelines. Some of the country’s pipelines are over 60 years old, having outlived their lifespan.
“Some of those pipelines are 60 years or more. They have already outlived their usefulness. This presents an opportunity for companies in the midstream and downstream sectors to invest in this area,” Lokpobiri added.
Lokpobiri emphasized that the government would continue to support local industries, as importing foreign goods only served to create jobs elsewhere, while investing in local companies retained value and jobs within the country.
“I will continue to fight for this industry and for companies like Monarch Alloys. If we allow dumping to persist, no new investments will come in. We must make cautious efforts to promote local content,” he asserted.
Monarch Alloys CEO, Atul Chaudhary, highlighted the company’s growth, announcing that Monarch Alloys is ending the importation of steel into Nigeria. He stated that the company, which had been importing iron rods before setting up in the country, now produces all its steel locally.
“We no longer need to import anything, thanks to our local production capabilities,” Chaudhary said, noting that the company’s factory, set up in less than two years, has an annual capacity of 2 million square meters and can produce up to 500 pipes per day.
Felix Ogbe, Executive Secretary of the NCDMB, commended the facility as another step forward in Nigeria’s ability to provide advanced pipeline infrastructure locally. He praised the facility as a testament to the success that comes when private enterprise aligns with national vision and demonstrated local capacity.
“At NCDMB, we are particularly proud of this development because it directly aligns with our mandate. 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.
The launch of the Monarch Alloys facility marks a significant milestone in Nigeria’s pursuit of greater local content participation within its oil and gas sector.
