President Bola Tinubu has called on international oil companies operating in Nigeria to award more contracts to qualified indigenous engineering and manufacturing firms, saying local businesses should play a greater role in the country’s energy development.
The President made the appeal on Thursday during a meeting with the Founder and Chairman of Lee Engineering Group, Leemon Ikpea, at the State House, Abuja.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, disclosed this in a statement titled, ‘President Tinubu Backs Nigerian Engineering as Local Firm Builds Compressor Stations to Unlock Escravos–Lagos Pipeline’s 2.3 Billion Cubic Feet Daily Gas Capacity.’
Lee Engineering is handling the engineering, procurement and construction of two midline compressor stations in Edo State.
The facilities are designed to increase operating pressure along the Escravos–Lagos Pipeline System, enabling it to transport gas at its full capacity of 2.3 billion standard cubic feet daily.
The pipeline’s capacity was increased from 1.1 billion standard cubic feet per day following the ELPS II expansion.
When completed, the compressor stations are expected to improve gas supply to power plants and industries along the pipeline corridor while boosting exports to neighbouring West African countries through the West African Gas Pipeline.
According to Onanuga, Tinubu emphasised the need for his administration’s Nigeria First policy to deliver tangible benefits to indigenous businesses.
He stated, “President Tinubu said Nigeria First must translate into more contracts for capable Nigerian firms, greater use of locally manufactured equipment and more skilled jobs for Nigerians.”
The President urged international oil companies to establish stronger partnerships with Nigerian engineering firms that had demonstrated their ability to execute complex projects.
He also highlighted the administration’s 2024 executive orders and presidential directives on local content compliance, contracting costs and approval timelines, noting that the measures were intended to attract investment, reduce delays and create more opportunities for Nigerian businesses.
Tinubu reiterated his commitment to developing the country’s gas resources to support industrial growth, improve electricity supply, generate employment and increase export earnings.
Responding, Ikpea commended the administration’s policy, disclosing that Lee Engineering’s fabrication yard in Warri, Delta State, was manufacturing some components for the compressor station project.
He described the facility as home to some of the industry’s most advanced fabrication equipment, adding that Nigerian companies had invested substantially in technology, machinery and skilled personnel.
Ikpea said local firms now possessed the expertise and capacity to execute complex engineering projects previously handled by foreign contractors, a development he said could retain more jobs, technical knowledge and economic value within Nigeria.
