Tinubu urges oil firms to award more contracts to local engineers, unlock 2.3bn cubic feet daily gas capacity

• President Tinubu

• President Tinubu

From Juliana Taiwo-Obalonye, Abuja

President Bola Tinubu has urged international oil companies operating in Nigeria to give indigenous engineering firms more contracts, as a Nigerian company, Lee Engineering, builds two compressor stations to enable the Escravos–Lagos Pipeline System to deliver its full capacity of 2.3 billion standard cubic feet of gas daily.

Tinubu said local firms with proven technical capacity must play a greater role in major energy projects, stressing that his administration’s Nigeria First policy would prioritise local expertise, equipment manufacturing and job creation.

The President spoke on Thursday in Abuja while receiving the Founder and Chairman of Lee Engineering Group, Leemon Ikpea, at the State House, according to a statement issued by Special Adviser on Information and Strategy, Bayo Onanuga.

The two compressor stations, being constructed by Lee Engineering in Edo State, are expected to raise operating pressure on the pipeline and enable it to deliver its expanded capacity, up from 1.1 billion standard cubic feet of gas per day.

Although the Escravos–Lagos Pipeline System’s capacity was increased under the ELPS II expansion, the additional compressor infrastructure is required to enable the system to operate at its full potential.

Tinubu said Nigeria First 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 engineering firms that had demonstrated the capacity to execute complex projects.

The President also highlighted his administration’s 2024 executive orders and directives on local content compliance, contracting costs and approval timelines, saying the measures were designed to attract investment, reduce delays and expand opportunities for Nigerian businesses.

When completed, the compressor stations are expected to improve gas transportation to power plants and industries along the pipeline corridor, while supporting increased supplies to neighbouring West African countries through the West African Gas Pipeline.

The project is also expected to create opportunities for additional export earnings as Nigeria seeks to maximise the economic value of its gas resources.

Ikpea commended Tinubu’s Nigeria First policy, disclosing that the company’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 Nigerian engineering companies had invested significantly in modern technology, equipment and skilled personnel.

According to him, indigenous firms now possess the capacity to undertake complex engineering, procurement and construction projects previously handled by foreign contractors.

Ikpea said greater participation by Nigerian companies in such projects would retain more jobs, technical expertise and economic value within the country.

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