The Executive Secretary of the NCDMB, Felix Ogbe, speaking at the commissioning ceremony, emphasized that the Monarch Alloys facility represents a pivotal step in strengthening the nation's capacity to provide advanced pipeline infrastructure entirely designed, built, and completed within Nigeria.
He lauded the project as a testament to the potent synergy between private enterprise and national objectives, demonstrating the tangible results of developing and confidently deploying local expertise. "At the Nigerian Content Development and Monitoring Board, we are particularly proud of this development because it speaks directly to the mandate of the Board. It strengthens our value chain, deepens local participation, and affirms our collective commitment to building an oil and gas industry driven by Nigerians," Ogbe stated.
Reiterating the NCDMB's core philosophy, Ogbe clarified, "Let me state again that Nigerian Content is not about ‘Nigerianisation’ or exclusion of foreign participation in the oil and gas industry. It is about value creation in Nigeria by encouraging the involvement of multinationals and Original Equipment Manufacturers (OEMs) in a mutually beneficial manner."
He further highlighted the facility's alignment with the Nigerian Content Equipment Certificate (NCEC), a key instrument under the NOGICD Act, which is issued to manufacturers and OEMs committed to establishing production facilities in Nigeria for components, equipment, and systems utilized in the oil and gas industry.
Ogbe lamented the historical reliance on foreign sources for critical elements like pipeline coating, which he noted drained both opportunities and economic value from the Nigerian economy. Expressing his satisfaction with the new development, he said, "Today, that equation is shifting. This facility brings high-performance 3LPE and concrete weight coating capability into the country, delivering not only technical excellence but also economic benefits that stay within our borders."
He underscored the significant economic implications of the facility, including job creation, skills development, and the stimulation of local manufacturing and logistics sectors. "Monarch Alloys is not only serving a sectoral need; it is actively contributing to national development," the NCDMB boss affirmed.
Ogbe urged stakeholders, particularly operating companies and both international and national oil companies, to deepen their collaboration with local players such as Monarch Alloys to further enhance the utilization of local content.
The Minister of Petroleum (Oil), Heineken Lokpobiri, heartily commended Monarch Alloys for establishing the facility, emphasizing its role in reducing Nigeria's dependence on foreign companies for crucial pipe coating services. He called upon oil companies to prioritize patronage of Monarch Alloys over imports.
Minister Lokpobiri advocated for more local content initiatives to ultimately end the reliance on importation, asserting that "Nigeria, under President Bola Tinubu, is no longer a dumping ground." He also pointed out that a significant challenge contributing to Nigeria's dwindling oil production is the poor state of existing pipeline infrastructure, with many pipelines exceeding 60 years in age.
The Minister of State for Industry, Trade and Investments, John Enoh, highlighted the rapid establishment of the facility within approximately 18 months, coinciding with the current administration. He expressed his belief that the pipe coating facility will significantly contribute to expanding Nigeria's industrial value chains.
"I believe that we are decreasing our dependence on imports, on importation. Above all, I believe that this event, this ceremony, makes a statement about our country, Nigeria, and about the fact that it is a strong player in the international oil and gas ecosystem," Minister Enoh remarked. He passionately called for increased domestic investment, urging, "It’s important to encourage everyone, but we should invest in our country, not tomorrow, not next week, today. We should build in our country, and we should believe in our country."
 |
| A section of Monarch Alloy pipe coating plant in Ikorodu, Lagos. Photo: Dare Olawin |
In his address, the Chief Executive Officer of Monarch Alloys, Atul Chaudhary, proudly announced that the company was effectively ending the importation of steel into Nigeria. He stated that Monarch Alloys had steadily grown to become a leading steel producer in the nation. "Before the time we set up in the country, we used to import steel. The country used to import all the iron rods in the country. But today, because of local production, we don’t need to import anything," Chaudhary affirmed.
He noted the remarkable speed at which the facility was established, taking less than two years from May 2023 to its completion on January 25. Chaudhary expressed the company's commitment to further investments in Nigeria, stating that the facility boasts an annual coating capacity of 2 million square meters and can process up to 500 pipes daily.
The Governor of Lagos State, Babajide Sanwo-Olu, represented by the Secretary to the State Government, Bimbola Salu-Hundeyin, lauded Monarch Alloys for its investment in Lagos State and the creation of employment opportunities for its citizens. He emphasized that the establishment of the facility signifies significant industrial progress within the state.
Governor Sanwo-Olu further highlighted the facility's potential benefits to other sectors, such as maritime, by ensuring safety and stability in various projects. He proudly noted that the plant's location in Ikorodu demonstrated the trust and confidence that investors have in Lagos State.
Speaking on behalf of Shell PLC, Osagie Okunbor assured Monarch Alloys of Shell's full support and commended the company for the swift completion of the facility within 18 months. He emphasized the critical importance of pipeline coating in oil production and acknowledged the NCDMB's pivotal role in the successful realization of the project.
A pipe coating facility is a crucial industrial establishment that applies protective coatings to pipes used in diverse industries, including oil and gas and water transmission. These coatings are essential for safeguarding pipes against corrosion, abrasion, chemical damage, and other detrimental environmental factors, ensuring they meet stringent industry standards for durability, safety, and overall performance.
The commissioning event was attended by prominent figures, including the Senator Representing Lagos East, Adetokunbo Abiru; former Minister of Industry, Niyi Adebayo; traditional rulers, and other distinguished guests, underscoring the national significance of this development in bolstering Nigeria's local content capacity in the oil and gas sector.