Nigeria bans oil pipeline importation to boost local production

The Federal Government of Nigeria has banned the importation of oil pipelines into the country as a way of promoting local production and supporting indigenous manufacturers.

The Minister of Petroleum Resources (Oil), Heineken Lokpobiri, stated this on Thursday during the commissioning of Monarch Alloys’ 33LPE and concrete weight coating facility in Ikorodu, Lagos State.

According to Lokpobiri, the country has to stop importing pipelines to patronise local producers.

Speaking at the event, Lokpobiri emphasized the need for the country to stop relying on imported pipelines, particularly from China, and to encourage local industries that have the capacity to meet the demands of the oil and gas sector.

He expressed happiness that for the past 15 years, Monarch Alloys had laid a solid foundation, 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.

Lokpobiri expressed concern over the continued issuance of waivers by the Nigerian Content Development and Monitoring Board (NCDMB), which allows for the importation of foreign pipelines. He called on the Board to halt such practices going forward.

He however cautioned that without strong local patronage and enforcement of the local content policy, such companies might not survive in the long term.

“In the past, Nigeria was a dumping ground for imported pipes. But under the leadership of President Bola Tinubu, dumping will be no more. We must support our industries so they can grow and help sustain our oil and gas sector,” he added.

The move is expected to strengthen Nigeria’s oil and gas infrastructure, create more jobs, and encourage investments in local manufacturing capabilities.