Tinubu Urges Oil Firms To Give Nigerian Engineering Companies More Contracts

President Bola Tinubu has urged international oil companies operating in Nigeria to give competent indigenous engineering and manufacturing firms greater opportunities to participate in major energy projects.

Tinubu made the call on Thursday when he received the Founder and Chairman of Lee Engineering Group, Leemon Ikpea, at the State House in Abuja.

The President’s Special Adviser on Information and Strategy, Bayo Onanuga, disclosed the details of the meeting 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.”

According to the statement, Lee Engineering is handling the engineering, procurement and construction of two midline compressor stations in Edo State. The facilities are expected to increase operating pressure on the Escravos–Lagos Pipeline System, enabling it to deliver its designed capacity of 2.3 billion standard cubic feet of gas daily, following the ELPS II expansion from 1.1 billion cubic feet.

The project is expected to improve gas supplies to power plants and industries along the pipeline corridor while increasing deliveries to neighbouring West African countries through the West African Gas Pipeline. The development could also create additional export revenue for Nigeria.

Tinubu said his administration’s Nigeria First policy must translate into more contracts for capable Nigerian companies, increased use of locally manufactured equipment and the creation of skilled jobs for Nigerians. He urged international oil companies to strengthen partnerships with indigenous engineering firms that have demonstrated the ability to execute complex projects.

The President also highlighted the administration’s 2024 executive orders and presidential 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. He reaffirmed his commitment to harnessing the country’s gas resources to support industries, improve electricity supply, create jobs and increase export earnings.

In response, Ikpea commended the policy and disclosed that Lee Engineering’s fabrication yard in Warri, Delta State, was producing some components for the compressor stations. He said the facility had advanced fabrication equipment and noted that Nigerian firms had invested in technology, equipment and skilled personnel, enabling them to undertake complex projects previously handled by foreign contractors.