The plant has an annual external capacity coating capacity of two million square meters and an internal square meters coating capacity of one million square meters.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri on Thursday announced a ban on the issuance of waivers for the importation of threaded pipes for use in the Nigerian oil and gas industry.
He handed the directive to the Nigerian Content Development and Monitoring Board (NCDMB) at the commissioning of Monarch Alloys Limited's concrete weight coating plant at Ikorodu, Lagos State.
The plant has an annual external capacity coating capacity of two million square meters and an internal square meters coating capacity of one million square meters. The facility supports onshore and offshore pipeline requirements where increased line lengths and sea-bed depths demand advanced corrosion protection and deploys full range of coating systems.
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The event attracted several dignitaries including the Minister of State for Industry, Trade and Investment, John Owan Enoh, federal legislators and the Secretary to Lagos State Government, Ms Bimbo Salu-Hundeyin.In his speech, Mr Lokpobiri emphasized that investments like the Monarch Alloys Limited's must be patronised, to encourage similar projects in the sector. He underlined the importance of the local content policy to the nation's economy, assuring that the Federal Government would continue to support manufacturers, with a view to creating jobs in the country. "We would not allow dumping of pipes or such things anymore, we have a duty to support our industries to grow," he stressed.
Also speaking, the Minister of State for Industry, Trade and Investment lauded the promoters of Monarch Alloys Limited's for decreasing Nigeria's dependence on importation and expanding the value chain. He said the investment aligned with the agenda of his ministry to promote value addition, job creation and partnership for the growth of the economy. The investment also serves as a model for continuous collaboration between the private sector and government and created opportunities, he said. Enoh stated further that Nigeria's economy would only grow through industrialization, assuring that government would continue to provide enabling environment for investments to thrive.
In his remarks, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Felix Omatsola Ogbe commended the investment, noting that it underscored the mandate of the Board.
The facility, he added, aligns with the intent of the Nigerian Content Equipment Certificate (NCEC) -- a key instrument under the NOGICD Act, which is issued to manufacturers and Original Equipment Manufacturers (OEMs) who commit to establishing production in Nigeria for components, equipment and systems used in the oil and gas industry.
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Mr Ogbe confirmed that such manufacturers and OEMs are given priority consideration during technical bid evaluations in the oil and gas industry. This means companies like Monarch Alloys are not just contributing to industrialization but are also positioned to benefit directly from local contracting opportunities, he noted.
He admitted that sourcing critical elements such as pipeline coating from abroad drains both opportunity and value from our economy. He noted the the situation had started to change, with the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act by the NCDMB.
Speaking further, Mr Ogbe remarked that the new facility brings high-performance 3LPE and concrete weight coating capability into the country, delivering not only technical excellence but economic benefit that stays within our borders.
He pointed out that "the economic implications are significant, including job creation, skills development, stimulation of local manufacturing and logistics. Monarch Alloys is not only serving a sectoral need, it is actively contributing to national development." He also challenged industry stakeholders, especially operating companies to deepen their collaboration with local players such as Monarch Alloys."
Earlier in his welcome address, the Managing Director of Monarch Alloys Limited, Mr Atul Chaudhary confirmed that the company completed the investment within 18 months. He also announced the company's plans to establish an LSAW pipe mill in the country to meet the needs of the oil and gas industry.
