President calls for stronger local partnerships as indigenous firm works to expand Escravos–Lagos gas pipeline capacity to 2.3 billion cubic feet daily……
President Bola Tinubu has called on international oil companies operating in Nigeria to increase contract opportunities for indigenous engineering and manufacturing firms, stressing the need for greater local participation in major energy projects.
Tinubu made the appeal on Thursday during a meeting with the Founder and Chairman of Lee Engineering Group, Leemon Ikpea, at the State House in Abuja.
Details of the meeting were disclosed in a statement by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, 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 currently handling the engineering, procurement and construction of two midline compressor stations in Edo State. The facilities are expected to improve the performance of the Escravos–Lagos Pipeline System by increasing operating pressure and enabling it to deliver up to 2.3 billion standard cubic feet of gas daily.
According to the statement, the pipeline’s capacity was increased from 1.1 billion standard cubic feet per day following the ELPS II expansion.
The project is also expected to improve gas supplies to power plants and industries along the pipeline corridor while supporting additional deliveries to neighbouring West African countries through the West African Gas Pipeline. This could create further opportunities for export earnings.
Tinubu said his administration’s Nigeria First policy should translate into more contracts for qualified Nigerian companies, increased use of locally manufactured equipment and the creation of skilled employment opportunities.
He urged international oil companies to establish stronger partnerships with indigenous engineering firms that had demonstrated the technical capacity to execute complex projects.
The President also highlighted the executive orders and presidential directives introduced by his administration in 2024 to strengthen local content compliance, reduce contracting costs and shorten approval timelines.
According to Onanuga, the measures were designed to attract investment, eliminate unnecessary delays and widen 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 revenue.
He maintained that local firms should play a greater role in the energy sector, with more project contracts and equipment manufacturing opportunities retained within the domestic economy.
In his response, Ikpea praised the administration’s policy direction, noting that Lee Engineering was using its fabrication yard in Warri, Delta State, to produce some of the components required for the compressor station project.
He described the facility as being equipped with some of the industry’s most advanced fabrication machinery.
Ikpea said Nigerian engineering companies had made substantial investments in equipment, technology and skilled manpower, positioning them to handle sophisticated projects that were previously dominated by foreign contractors.
He added that expanding opportunities for indigenous firms would help retain more jobs, technical expertise and economic value within Nigeria.
