The Nigerian Content Development and Monitoring Board (NCDMB) has issued a clarion call to major stakeholders in the Nigerian oil and gas sector, including the Nigerian National Petroleum Company Limited (NNPC), to prioritize and significantly increase the in-country production and utilization of line pipes. This strategic move is aimed at bolstering local content development, conserving valuable foreign exchange reserves, and generating much-needed employment opportunities within the oil and gas industry. The NCDMB underscored the importance of this initiative during a stakeholders’ workshop held at the Nigerian Content Tower in Yenagoa, Bayelsa State. The workshop brought together key industry players, including representatives from the Oil Producers Trade Section (OPTS), the Independent Petroleum Producers Group (IPPG), NNPC Upstream Investment Management Services (NUIMS), as well as pipe manufacturers and coaters. The primary objective of the workshop was to assess the progress made in local line pipe production since 2011 and to collaboratively explore avenues for enhancing local manufacturing capabilities.
Nigeria possesses an extensive network of pipelines, exceeding 5,120 kilometers in length, designed to facilitate the transportation of crude oil to refineries and the subsequent evacuation of refined products. However, a decline in domestic crude oil production and a shift towards fuel imports have led to the neglect of many NNPC depots. This unfortunate circumstance has forced the country to increasingly rely on private tank farms and road tankers for the supply and distribution of petroleum products, a less efficient and more costly alternative. The NCDMB emphasized that revitalizing the domestic pipeline network through increased local production of line pipes is crucial for optimizing the efficiency and cost-effectiveness of the downstream sector.
In his opening remarks at the workshop, NCDMB Executive Secretary, Felix Ogbe, highlighted the critical role of line pipes in oil and gas operations, describing them as the lifeblood of the industry. Represented by the Director of Monitoring and Evaluation, Abdulmalik Halilu, Ogbe emphasized the mandatory provision of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, which stipulates 100% local manufacturing of both seamless and welded line pipes. He further stressed that without line pipes, the efficient evacuation of petroleum products would be severely hampered, impacting the entire value chain.
Ogbe affirmed that policies implemented by the NCDMB have strategically positioned Nigeria to retain significant revenue and generate employment opportunities through local line pipe production. However, he stressed the imperative of fostering robust collaboration with industry players to achieve meaningful progress in this critical area. The collective efforts of all stakeholders are crucial for realizing the full potential of local content development and maximizing the economic benefits for Nigeria. This collaborative approach will ensure a sustainable and thriving oil and gas sector that contributes significantly to the nation’s economic growth.
Reinforcing the importance of local content development, Dr. Ama Ikuru, the NCDMB’s Director of Capacity Building, emphasized the significance of made-in-Nigeria line pipes as a cornerstone of the nation’s industrial development. He reiterated that this initiative is a key requirement of the NOGICD Act and the Presidential Executive Order on Local Content. Dr. Ikuru pointed out that increasing local production of line pipes would not only help reduce operational costs by eliminating middlemen markups but also strengthen the overall competitiveness of Nigeria’s oil and gas industry. He further stated that achieving self-sufficiency in line pipe production would enhance Nigeria’s reputation for implementing and enforcing local content regulations.
Dr. Ikuru drew attention to major oil and gas infrastructure projects across the African continent, such as the Trans-Saharan Gas Pipeline, the African Renaissance Pipeline, and the Transmed Gas Pipeline. These projects, he noted, represent potential markets for Nigerian-made line pipes under the framework of the African Continental Free Trade Area (AfCFTA). Leveraging these opportunities would further stimulate local production and establish Nigeria as a key player in the regional oil and gas industry. The NCDMB encouraged industry stakeholders to capitalize on these opportunities to expand their market reach and contribute to the overall growth of the African oil and gas sector. This proactive approach, coupled with the implementation of effective policies, would position Nigeria as a leading hub for line pipe production in Africa.
To further drive local production, Ogbe posed a series of critical questions to the industry stakeholders. These included whether Nigeria should maintain its focus on line pipe manufacturing, what infrastructure upgrades and investment incentives are required to enhance local production, and which policies would be most effective in achieving the desired outcomes. The workshop concluded with a renewed commitment from all stakeholders to address the existing barriers hindering in-country manufacturing of line pipes. The shared goal is to transform Nigeria into a leading hub for line pipe production in Africa, thereby maximizing the economic benefits derived from the oil and gas sector. This renewed commitment underscores the collective determination to unlock the full potential of the Nigerian oil and gas industry and solidify the nation’s position as a major player in the global energy landscape.
