Tinubu tasks oil majors on local content as Nigerian firm moves to unlock 2.3bn cubic feet gas pipeline capacity
The President said his administration’s Nigeria First policy must translate into greater participation by Nigerian companies in major energy projects, increased patronage of locally manufactured equipment, and more skilled employment opportunities for citizens.
Tinubu spoke at the State House, Abuja, while receiving the Founder and Chairman of Lee Engineering Group, Chief Dr Leemon Ikpea, whose company is constructing two strategic compressor stations designed to significantly improve gas transportation through the Escravos–Lagos pipeline corridor.
The indigenous engineering firm is handling the Engineering, Procurement and Construction (EPC) of the two midline compressor stations in Edo State, a project expected to enable the pipeline to operate at its full designed capacity of 2.3 billion standard cubic feet of gas per day.
Although the pipeline’s designed capacity was increased from 1.1 billion to 2.3 billion standard cubic feet daily under the Escravos–Lagos Pipeline System II expansion, the absence of the required compressor stations has prevented the infrastructure from delivering at its full potential.
The ongoing project is expected to address the limitation by increasing operating pressure along the pipeline, thereby facilitating improved gas transportation to power plants, manufacturing industries and other major consumers.
According to a statement issued on Thursday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, Tinubu reaffirmed his administration’s determination to harness Nigeria’s abundant gas resources to improve electricity supply, accelerate industrialisation, create employment and strengthen the country’s export earnings.
The President noted that expanding critical gas infrastructure capacity would also support increased supplies to neighbouring West African countries through the West African Gas Pipeline, potentially generating additional export revenue for Nigeria.
He stressed that Nigerian engineering and manufacturing companies that had demonstrated technical competence and the ability to execute complex projects deserved greater opportunities to participate in the country’s oil and gas industry.
Tinubu urged international oil companies to strengthen partnerships with indigenous contractors, insisting that local content development should go beyond policy declarations to deliver measurable economic benefits.
He maintained that increased reliance on qualified Nigerian engineering firms would help retain more investment, expertise and employment opportunities within the domestic economy while strengthening the country’s industrial capacity.
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 in the petroleum sector.
He explained that the measures were designed to eliminate unnecessary delays, attract additional investments and create a more favourable operating environment for Nigerian businesses seeking to participate in major energy projects.
Earlier, Ikpea commended the President for championing the Nigeria First policy, describing it as an important initiative for expanding indigenous participation in strategic sectors of the economy.
He said Lee Engineering had deployed its fabrication facility in Warri, Delta State, to manufacture components needed for the compressor stations.
According to him, the facility houses some of the industry’s most advanced fabrication equipment, demonstrating the growing sophistication and technical capabilities of Nigerian engineering companies.
Ikpea said indigenous firms had invested substantially in modern equipment, technology and skilled manpower, positioning them to undertake highly technical Engineering, Procurement and Construction projects previously dominated by foreign contractors.
He maintained that greater patronage of competent Nigerian firms would help retain jobs, technical expertise, and economic value within the country while reducing dependence on foreign contractors to execute critical infrastructure projects.
The Lee Engineering chairman expressed confidence that Nigerian companies can deliver complex energy infrastructure projects and contribute meaningfully to the Federal Government’s ambition to position natural gas as a major driver of economic growth
The compressor stations are essential to the ELPS II expansion, and completing them is expected to improve gas delivery along the Escravos–Lagos corridor and strengthen supplies to domestic power generation facilities, industrial consumers, and regional export markets.
