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Business

Tinubu asks oil majors to hand Nigerian firms more energy contracts

2 min read
The gist
  • President Bola Tinubu met Lee Engineering chairman Leemon Ikpea at the State House on Thursday.
  • Lee Engineering is building two compressor stations in Edo to help the Escravos–Lagos pipeline run at full capacity.
  • Tinubu said his Nigeria First policy should mean more contracts, local equipment and skilled jobs for Nigerians.

President Bola Tinubu has asked international oil companies (IOCs) working in Nigeria to open more of their big energy projects to Nigerian engineering and manufacturing companies that can do the job.

He made the call on Thursday at the State House in Abuja while hosting Leemon Ikpea, founder and chairman of Lee Engineering Group, according to a statement from presidential spokesman Bayo Onanuga.

The meeting came as Lee Engineering works on two compressor stations in Edo State. The stations are meant to lift pressure on the Escravos–Lagos Pipeline System so it can carry its full 2.3 billion standard cubic feet of gas a day.

The pipeline's design capacity was raised from 1.1 billion under the ELPS II expansion, but the compressors are still needed for it to actually deliver that volume.

Why it matters beyond the pipeline

Gas from that corridor feeds power plants and factories, so more pressure means more fuel for electricity and industry. The project is also expected to support gas exports to neighbouring West African countries through the West African Gas Pipeline, which could bring in extra revenue.

For ordinary Nigerians, the bigger promise in Tinubu's message is work. The President said his Nigeria First policy should show up as more contracts for capable local firms, more locally made equipment and more skilled jobs.

He urged the oil majors to team up with Nigerian engineering companies that have proved they can handle complex projects. He also pointed to his administration's 2024 executive orders and presidential directives on local content, contracting costs and approval timelines, saying they are meant to draw investment, cut delays and widen opportunities for Nigerian businesses.

Tinubu restated his plan to develop the country's gas resources to power industries, improve electricity supply, create jobs and earn more from exports.

Ikpea praised the policy and said Lee Engineering's fabrication yard in Warri, Delta State, is producing some parts for the compressor stations. He described the yard as holding some of the most advanced fabrication equipment in the industry.

He added that Nigerian firms have put serious money into equipment, technology and skilled staff, and can now take on complex engineering, procurement and construction work that foreign contractors used to handle. Doing so, he said, keeps more jobs, know-how and economic value inside the country.

The statement did not say when the compressor stations will be finished or what they will cost.

Sources

This story draws on reporting by:

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