FG Halts Importation of Oil Pipelines

The Federal Authorities has introduced a ban on the importation of oil pipelines into Nigeria.

The Minister of Petroleum Assets (Oil), Heineken Lokpobiri, acknowledged this on Thursday in the course of the launch of Monarch Alloys 33LPE and concrete weight coating facility within the Ikorodu space of Lagos State.

In response to Lokpobiri, the nation has to cease importing pipelines to patronise native producers.

Lokpobiri instructed the Nigerian Content material Growth and Monitoring Board to not give waivers for the importation of Chinese language pipelines any longer.

Whereas acknowledging that pipelines are crucial to the oil and gasoline trade, he stated one of many causes the NCDMB was created was to allow Nigerian corporations to construct capability to service the trade.

He expressed happiness that for the previous 15 years, Monarch Alloys had laid a stable basis, expressing considerations, nevertheless, over its sustainability.

“I’m very joyful that corporations like this at the moment are arising in Nigeria.

However what’s extra vital is just not what all of us are getting right here to witness. What’s extra vital is the sustainability of this firm. If this firm is just not patronised by corporations within the oil and gasoline trade, this firm will die naturally.

“Prior to now, Nigeria was once a dumping floor for corporations importing these pipes from China. I additionally do know that a few corporations like this had been arrange they usually discovered it very tough to outlive as a result of we allowed dumping to happen.

“Let me take this chance to say right this moment that beneath the management of President Bola Tinubu, dumping will likely be no extra. Now we have an obligation to assist our industries to develop and render the providers which can be related to the survival and sustainability of the oil and gasoline trade,” the minister stated.

Chatting with the NCDMB crew, he famous, “I’m very joyful that I see all the NCDMB household seated right here. The ES is right here. I noticed all the administrators who’re right here. Let me use the chance to publicly say that, look, there needs to be no extra waivers to herald Chinese language pipes.

“The pipes the trade wants are proper right here in Monarch Alloys Restricted. And what I see and the complaints I get is that, as an alternative of implementing an area content material act, what’s being finished is that waivers are being given for Chinese language merchandise to be introduced in, thereby killing corporations like this one. That’s why I’m saying it’s crucial for us to assemble right here right this moment.

“I need to see how, within the subsequent yr, this firm will develop. You realize, in its capability to have the ability to present providers, not simply to Nigeria, however all the African continent. The entire of Africa is wanting as much as Nigeria for providers, for information sharing. No matter you consider the oil and gasoline trade, the remainder of Africa is wanting as much as Nigeria. And for Nigeria, one of the elementary issues we now have is the integrity of our pipelines.”

The oil minister maintained that Nigeria can simply produce 3 million barrels of oil per day, however the problem is that the pipelines are outdated.

“A few of these pipelines are 60 years or extra. I’m not even 60, so a few of them are even older than me. In order that they have already outlived their lifespan. And it’s an easy fraction, that provides one other alternative for corporations within the midstream and downstream to additionally make related investments in that sector,” he posited.

Lokpobiri added that the Federal Authorities will proceed to assist industries like Monarch Alloys to develop in order that it may well retain their worth in-country.

“Any pipe we import from any nation, we’re creating and sustaining jobs elsewhere. Any pipe we purchase from this firm and different corporations like this, we’re retaining jobs in Nigeria, and we’re retaining worth in Nigeria. That’s the reason because the Chairman of the Governing Council of the NCDMB, I’ll have an issue with the board if I hear that as an alternative of patronising Nigerian corporations, waivers are being given.

“You might not like my face, however I’ll proceed to combat for this trade. So far as President Tinubu, in his personal magnanimity, retains me because the minister in control of oil, and as chairman of the governing council of the NCDMB, I’ll proceed to combat for corporations like this in order that extra corporations like this may develop and repair the trade in Nigeria. If cautious efforts should not made, no funding will are available.

“If we permit dumping to persist, no extra new funding will are available. So, girls and gents, I want to come right here within the subsequent yr to see how this firm has grown and the way we now have additionally supported them utilizing native content material. I’m very joyful that the position of native content material within the board is publicly acknowledged,” he submitted.

In his speech, the Chief Govt Officer of Monarch Alloys, Atul Chaudhary, disclosed that the corporate is ending metal importation into Nigeria.

He stated the corporate has grown steadily to turn out to be one of many main producers of metal right this moment within the nation.

“Earlier than the time we arrange within the nation, we used to import metal. The nation used to import all of the iron rods within the nation. However right this moment, due to native manufacturing, we don’t have to import something,” he stated.

Chaudhary famous that the agency was in a position to arrange the manufacturing facility in lower than two years, from Could 2023 to January 25.

He stated the corporate is wanting ahead to extra investments within the nation, saying it has an annual capability of two million sq. meters each year and might shut as much as 500 pipes per day.

The Govt Secretary of the NCDMB, Felix Ogbe, stated the power represents one other step ahead within the nation’s means to offer superior pipeline infrastructure which is designed, constructed, and accomplished right here in Nigeria.

In response to him, the power is a testomony to what’s potential when personal enterprise aligns with nationwide imaginative and prescient, and when native capability is just not solely developed however demonstrated with confidence.

“On the Nigerian Content material Growth and Monitoring Board, we’re notably happy with this improvement as a result of it speaks on to the mandate of the Board. It strengthens our worth chain, deepens native participation, and affirms our collective dedication to constructing an oil and gasoline trade pushed by Nigerians,” Ogbe stated.