Susan Abayomi
President Bola Tinubu has called on international oil companies operating in Nigeria to award more contracts to indigenous engineering firms, stressing the need to expand local participation in major energy projects.
The President made the call on Thursday at the State House, Abuja, while receiving the founder and chairman of Lee Engineering Group, Leemon Ikpea, according to a statement by his Special Adviser on Information and Strategy, Bayo Onanuga.
Tinubu said his administration’s Nigeria First policy should translate into increased opportunities for qualified Nigerian companies, greater use of locally manufactured equipment and the creation of skilled employment.
He urged international oil companies to strengthen partnerships with indigenous firms that have demonstrated the technical expertise required to execute complex engineering projects.
The call comes as Lee Engineering Group undertakes the construction of two compressor stations in Edo State to support the full operating capacity of the Escravos–Lagos Pipeline System (ELPS).
The facilities are expected to enable the pipeline to deliver up to 2.3 billion standard cubic feet of gas daily, compared with its previous capacity of 1.1 billion standard cubic feet.
Although the ELPS II expansion increased the pipeline’s capacity, additional compressor infrastructure is needed to enable the system to operate at its expanded potential.
Upon completion, the stations are expected to improve gas supplies to power plants and industries along the pipeline corridor. They could also support gas deliveries to neighbouring West African countries through the West African Gas Pipeline.
The project is further expected to create opportunities for increased export earnings as Nigeria seeks to maximise the economic benefits of its natural gas resources.
Tinubu also highlighted executive orders and directives introduced in 2024 to strengthen local content compliance, address contracting costs and shorten approval timelines.
He said the measures were designed to attract investment, reduce delays and create a more favourable environment for Nigerian businesses to participate in major projects.
In his remarks, Ikpea commended the Nigeria First policy, disclosing that Lee Engineering’s fabrication yard in Warri, Delta State, was manufacturing some components required for the compressor stations.
He said the facility was equipped with advanced fabrication technology, reflecting investments by indigenous engineering companies in modern equipment and skilled personnel.
According to Ikpea, Nigerian firms have developed the capacity to execute complex engineering, procurement and construction projects that were previously handled largely by foreign contractors.
He added that expanding the participation of local companies in the oil and gas industry would help retain jobs, technical expertise and more economic value within Nigeria.
The President’s call highlights the importance of local content development in the energy sector, particularly in strengthening indigenous expertise, creating employment and ensuring that Nigerian businesses benefit more directly from investments in the country’s oil and gas resources.
