“Nigeria Used to be a Dumping Ground”: FG Bans Importation of Oil Pipelines
- The federal government announced that the importation of oil pipelines into Nigeria had been prohibited
- According to the Minister of Petroleum Resources, the country must stop importing pipes to help indigenous producers
- He directed the Nigerian Content Development and Monitoring Board to cease allowing imports of pipes from China to be excluded
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The Federal Government has announced a ban on the importation of oil pipelines into Nigeria.
Source: Getty Images
During the opening of the Monarch Alloys 33LPE and concrete weight coating plant in the Ikorodu neighbourhood of Lagos State on Thursday, Heineken Lokpobiri, the Minister of Petroleum Resources (Oil), made this statement.
To support domestic producers, Lokpobiri says the nation must cease importing pipes.
Lokpobiri instructed the Nigerian Content Development and Monitoring Board to stop granting exemptions for the importation of pipes from China.
He acknowledged the critical role pipelines play in the oil and gas sector, but added that the NCDMB was established in part to help Nigerian businesses develop the capacity they need to serve the sector.
Although he was pleased that Monarch Alloys had established a strong foundation over the previous 15 years, he voiced doubts about its sustainability.
“I’m very happy that companies like this are now springing up in Nigeria.
“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.
Source: Getty Images
Speaking to the NCDMB team, he noted,
“The pipes the industry needs are right here in Monarch Alloys Limited. And what I see and the complaints I get is that, instead of implementing a local content act, what is being done is that waivers are being given for Chinese products to be brought in, thereby killing companies like this one. That’s why I’m saying it’s very important for us to gather here today.
“I want to see how, in the next year, this company will grow. You know, in its capacity to be able to provide services, not just to Nigeria, but the entire African continent. The whole of Africa is looking up to Nigeria for services, for knowledge sharing. Whatever you think about the oil and gas industry, the rest of Africa is looking up to Nigeria. And for Nigeria, one of the most fundamental problems we have is the integrity of our pipelines.”
According to the oil minister, Nigeria can easily produce three million barrels of oil per day; the pipelines' age is the problem.
FG insists on ending solar panel imports
Legit.ng reported the import of photovoltaic solar panels has increased recently, reaching almost N200 billion yearly, despite the crisis in Nigeria's power industry.
However, in order to preserve much-needed foreign cash and ease pressure on the naira, the federal government has insisted on stopping the importation of solar panels.
Instead, the government is taking a different approach and has announced what will replace the import of solar panels.
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Source: Legit.ng
