From Juliana Taiwo-Obalonye, Abuja
President Bola Tinubu has urged international oil companies operating in Nigeria to award more contracts to indigenous engineering firms, saying competent local companies must play a greater role in major energy projects.
He made the call as Lee Engineering Group builds two compressor stations in Edo State to enable the Escravos–Lagos Pipeline System to deliver its full capacity of 2.3 billion standard cubic feet of gas daily.
Tinubu spoke on Thursday while receiving the company’s founder and chairman, Leemon Ikpea, at the State House, Abuja, according to a statement by his Special Adviser on Information and Strategy, Bayo Onanuga.
The President said his administration’s Nigeria First policy must translate into more contracts for competent Nigerian companies, increased use of locally manufactured equipment and the creation of skilled jobs.
He urged international oil companies to strengthen partnerships with indigenous firms that had demonstrated the technical capacity to execute complex projects.
The two compressor stations are expected to raise operating pressure on the Escravos–Lagos pipeline, enabling it to deliver its expanded capacity, up from 1.1 billion standard cubic feet daily.
Although the pipeline’s capacity was increased under the ELPS II expansion, additional compressor infrastructure is required for the system to operate at its full potential.
On completion, the stations are expected to improve gas supplies to power plants and industries along the pipeline corridor and support deliveries to neighbouring West African countries through the West African Gas Pipeline.
The project could also generate additional export earnings as Nigeria seeks to maximise the economic value of its gas resources.
Tinubu highlighted his administration’s 2024 executive orders and directives on local content compliance, contracting costs and approval timelines, saying they were designed to attract investment, reduce delays and expand opportunities for Nigerian businesses.
Ikpea commended the Nigeria First policy and disclosed that Lee Engineering’s fabrication yard in Warri, Delta State, was manufacturing some components for the compressor stations.
He said the facility housed some of the industry’s most advanced fabrication equipment, adding that indigenous engineering companies had invested significantly in modern technology and skilled personnel.
According to him, Nigerian firms now possess the capacity to undertake complex engineering, procurement and construction projects previously handled by foreign contractors.
Greater participation by indigenous companies, he said, would retain more jobs, technical expertise and economic value within the country.