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Business

Tinubu backs Nigerian firms as Lee Engineering boosts Escravos–Lagos gas pipeline

2 min read
The gist
  • President Tinubu met Lee Engineering chairman Leemon Ikpea at the State House in Abuja on Thursday.
  • The firm is building two compressor stations in Edo State to lift the Escravos–Lagos pipeline to full capacity.
  • Tinubu urged international oil companies to hand more major energy contracts to competent Nigerian firms.

President Bola Ahmed Tinubu says his government wants Nigeria's gas reserves put to work for industry, electricity, jobs and export income, and he wants Nigerian engineering companies to win a bigger share of the contracts that make it happen.

He spoke in Abuja on Thursday while hosting Chief Leemon Ikpea, founder and chairman of Lee Engineering Group, at the State House. The meeting came as the Warri-based firm works on two compressor stations in Edo State for the Escravos–Lagos Pipeline System.

The pipeline's designed capacity was raised from 1.1 billion to 2.3 billion standard cubic feet of gas per day under the ELPS II expansion. But it needs the compressor stations to build up pressure and actually move that full volume.

Why it matters for ordinary Nigerians

More gas through that corridor means more fuel for power plants and factories along the route, which touches electricity supply and the cost of running a business. The project is also expected to strengthen gas deliveries to neighbouring West African countries through the West African Gas Pipeline, opening another route for export earnings.

Tinubu used the meeting to push his Nigeria First policy, saying it should show up in concrete ways: more contracts for capable local firms, more locally made equipment and more skilled jobs for Nigerians. He asked international oil companies to partner more closely with indigenous engineering companies that have proved they can handle complex work.

He also pointed to his administration's 2024 executive orders and presidential directives on local content compliance, contracting costs and approval timelines, which he said are meant to draw in investment, cut delays and widen opportunities for Nigerian businesses.

Ikpea, for his part, praised the policy. He said Lee Engineering's fabrication yard in Warri is producing some parts for the compressor stations and holds some of the most advanced equipment in the sector. Nigerian firms, he said, have put serious money into modern machinery, technology and skilled staff, and can now take on engineering, procurement and construction jobs that used to go to foreign contractors. That keeps jobs, know-how and economic value inside the country, he added.

The company is handling the engineering, procurement and construction of the two midline compressor stations in Edo State.

What happens next

The compressor stations still have to be completed and brought into service before the pipeline can run at its full 2.3 billion standard cubic feet per day. How quickly international oil companies respond to the call for more local contracts will also be watched.

Sources

This story draws on reporting by:

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