FG Bans Import Waivers for Threaded Pipes as Monarch Alloys Commissions Coating Plant in Lagos….new facility signals push for local manufacturing
The Federal Government has officially banned the issuance of import waivers for threaded pipes used in the oil and gas industry, a move aimed at boosting local manufacturing and curbing foreign dependence.
The announcement was made by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, during the commissioning of Monarch Alloys Limited’s concrete weight coating plant in Ikorodu, Lagos, on Thursday.
“We will no longer allow dumping of pipes or related products. The era of unchecked imports is over,” the Minister declared, tasking the Nigerian Content Development and Monitoring Board (NCDMB) with immediate enforcement.
The newly commissioned plant boasts an annual coating capacity of 2 million square meters externally and 1 million square meters internally, offering solutions for both onshore and offshore pipeline protection, especially in environments requiring advanced corrosion resistance.
Strategic Industrial Investment
The facility, completed within just 18 months, was celebrated as a milestone in Nigeria’s drive for industrialization and local content development. It drew dignitaries from across government, including Minister of State for Industry, Trade and Investment, Senator John Owan Enoh, and Secretary to the Lagos State Government, Ms. Bimbo Salu-Hundeyin.
Senator Enoh commended Monarch Alloys for significantly reducing Nigeria’s reliance on imports while creating opportunities along the oil and gas value chain.
“This investment reflects the federal government’s commitment to industrial growth and job creation. The collaboration between government and private sector must continue to grow,” Enoh said.
Local Content at the Core
In his remarks, NCDMB Executive Secretary, Engr. Felix Omatsola Ogbe, emphasized that Monarch Alloys’ investment aligns with the Board’s strategic goal of domestication and value retention within Nigeria’s oil and gas industry.
“Facilities like this meet the criteria of the Nigerian Content Equipment Certificate (NCEC), positioning them for priority consideration in technical bids,” he explained. “This isn’t just about pipes—it’s about building national capacity and ensuring that economic benefits stay in Nigeria.”
Ogbe also noted that sourcing pipeline materials abroad has long drained value from the Nigerian economy. But with the advent of local capacity such as Monarch’s, the industry can now retain critical value locally, generate employment, and drive skills development.
Plans for Further Expansion
Monarch Alloys Managing Director, Mr. Atul Chaudhary, revealed plans to establish a Longitudinal Submerged Arc-Welding (LSAW) pipe mill in Nigeria—another critical infrastructure to meet growing domestic and regional demand in the oil and gas sector.
The Minister of Petroleum Resources urged operating companies and EPC contractors to deepen local sourcing and patronize companies like Monarch, reiterating that the Federal Government will continue to support businesses that align with national development goals.
