Tinubu Backs Local Engineers As Lee Engineering Builds Gas Compressor Stations

Amarachi Ihesiulo

October 22, 2026
3 min read
President Bola Ahmed Tinubu

President Bola Ahmed Tinubu has reaffirmed his administration’s commitment to indigenous engineering as Nigerian firm Lee Engineering Group undertakes the construction of two compressor stations designed to unlock the Escravos–Lagos Pipeline System’s capacity of 2.3 billion standard cubic feet of gas per day.

Tinubu said greater participation by competent Nigerian companies in major energy projects would strengthen local industries, create skilled jobs and retain more economic value within the country.

The President spoke at the State House, Abuja, while receiving the Founder and Chairman of Lee Engineering Group, Chief Dr Leemon Ikpea, CON, according to information released on the meeting.

He urged international oil companies operating in Nigeria to expand partnerships with indigenous engineering and manufacturing firms capable of delivering complex projects.

The two compressor stations, being constructed by Lee Engineering under an Engineering, Procurement and Construction contract, are located in Edo State and form a critical part of efforts to maximise the pipeline’s gas transportation capacity.

Although the Escravos–Lagos Pipeline System’s capacity was increased from 1.1 billion to 2.3 billion standard cubic feet per day under the ELPS II expansion, additional compression infrastructure is required to raise operating pressure and enable the system to deliver at its designed capacity.

The project is expected to improve gas transportation to power plants and industries along the pipeline corridor, potentially supporting electricity generation, industrial production and economic activity.

Increased gas availability could also strengthen supplies to neighbouring West African countries through the West African Gas Pipeline, creating opportunities for additional export earnings.

Tinubu said his administration’s Nigeria First policy must translate into tangible opportunities for Nigerian businesses, including more contracts, greater utilisation of locally manufactured equipment and employment for skilled workers.

He also highlighted executive orders and presidential directives introduced in 2024 to strengthen local content compliance, reduce contracting costs and shorten approval timelines, describing them as part of efforts to improve the business environment and encourage investment.

Ikpea commended the administration’s policy, disclosing that Lee Engineering’s fabrication yard in Warri, Delta State, was manufacturing some components required for the compressor stations.

He said the facility houses advanced fabrication equipment and reflects investments by Nigerian companies in modern technology, engineering expertise and skilled personnel.

According to Ikpea, indigenous firms have developed the capacity to execute complex engineering, procurement and construction projects previously dominated by foreign contractors.

The development highlights the growing role of local engineering companies in Nigeria’s energy infrastructure, particularly as the country seeks to expand gas utilisation for domestic power generation, industrial growth and regional exports.

However, the project’s broader economic impact will depend on successful completion, reliable pipeline operations and sufficient gas supply to meet the needs of power plants, industries and export markets.

The initiative aligns with the government’s wider ambition to strengthen domestic capacity and position Nigeria’s gas resources as a driver of economic growth.

Amarachi Ihesiulo

Ihesiulo Grace Amarachi is a Nigerian journalist, writer and media professional serving as the Editor-in-Chief of TheTraffic.NG, a digital news platform covering national and international affairs. Her editorial interests span politics, business, aviation, health, technology, entertainment, sports and social development. She is committed to credible journalism, insightful reporting and compelling storytelling that informs public discourse and keeps readers abreast of important developments in Nigeria, Africa and beyond.