Nigeria is seeking to increase the economic benefits of its oil and gas industry by strengthening local expertise, expanding business opportunities and promoting domestic equipment manufacturing. The country aims to achieve 70% local content in the sector by 2027.
President Bola Tinubu has urged international oil companies operating in Nigeria to award more contracts to local engineering firms. He made the call during a meeting in Abuja with Leemon Ikpea, founder and chairman of Lee Engineering Group, a Nigerian company building two gas compression stations in Edo State.
Boosting local participation
The initiative supports the government’s “Nigeria First” policy, which prioritizes domestic expertise, locally manufactured equipment and skilled job creation. In 2024, the administration introduced measures to enforce local content requirements, reduce contracting costs and accelerate approval procedures.
Furthermore, Nigeria has made progress toward its 2027 target. Local content reportedly increased from 26% in 2016 to 56% in 2024. In December 2025, the Nigerian Content Development and Monitoring Board (NCDMB) and the Bank of Industry announced a $100 million fund to support local oil and gas companies.
Expanding gas transportation capacity
Meanwhile, Lee Engineering’s project highlights the growing role of Nigerian companies in major energy infrastructure. The two compression stations are expected to help the Escravos–Lagos gas pipeline operate at its expanded capacity of 2.3 billion standard cubic feet per day, up from 1.1 billion.
Consequently, the project could improve gas supplies to power plants and industries while supporting regional exports. Some equipment is also manufactured at Lee Engineering’s industrial facility in Warri, Delta State.
Ultimately, Tinubu’s appeal reflects Nigeria’s broader ambition to retain more economic value from its petroleum industry. However, achieving the 70% target will depend on local firms securing contracts, financing and opportunities to participate in major projects.
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