Tinubu Challenges Oil Giants as Nigeria Moves to Unlock 2.3bn Scf Gas Capacity

According to report by The Nation on Thursday, October 22, 2026, President Bola Ahmed Tinubu has urged international oil companies (IOCs) operating in Nigeria to give more contracts to capable indigenous engineering and manufacturing companies as efforts intensify to unlock the full transportation capacity of the Escravos–Lagos Pipeline System (ELPS).

The President made the call on Thursday at the State House in Abuja while receiving the Founder and Chairman of Lee Engineering Group, Chief Dr Leemon Ikpea.

The Nigerian engineering company is currently executing a project involving the construction of two midline compressor stations in Edo State.

The facilities are expected to enable the ELPS to transport gas at its full designed capacity of 2.3 billion standard cubic feet per day.

The pipeline’s capacity was increased from 1.1 billion to 2.3 billion standard cubic feet daily under the ELPS II expansion, but the absence of the necessary compressor stations has limited its ability to operate at the upgraded level.

The new compressor stations are expected to raise pressure along the pipeline and improve the movement of gas to electricity generation plants, industries and other major consumers.

According to a statement by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu said his administration’s Nigeria First policy was aimed at increasing local participation in major energy projects, promoting Nigerian-made equipment and creating more skilled jobs.

He added that improved gas infrastructure would boost electricity generation, support industrialisation, create employment and increase Nigeria’s export earnings.

Greater gas availability could also strengthen supplies to other West African countries through the West African Gas Pipeline.

Tinubu stressed that local content must produce tangible economic benefits rather than remain a policy statement.

He called on IOCs to deepen partnerships with technically competent Nigerian contractors.

The President also referenced executive orders and directives issued in 2024 to improve local content compliance, lower contracting costs and reduce approval delays in the petroleum industry.

Earlier, Ikpea praised the Nigeria First policy and said Lee Engineering was using its Warri, Delta State, fabrication facility to produce components for the compressor stations.

He said Nigerian engineering firms had invested heavily in modern technology, equipment and skilled personnel, enabling them to undertake complex Engineering, Procurement and Construction projects previously dominated by foreign companies.

Ikpea maintained that increased patronage of competent indigenous firms would help retain jobs, expertise and economic value within Nigeria while reducing dependence on foreign contractors.

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