Sylva calls for FG’s support to indigenous oil, gas companies
Minister of State Petroleum Resources, Chief Timipre Sylva has pledged the federal government’s support to indigenous oil and gas companies in the country.
Speaking during a tour of facilities of Lee Engineering and Construction Company’s fabrication plant in Warri, Delta state on Friday, Sylva said it is through government’s patronage and support that the local Content Act can be fully realised.
He said Nigeria was determined to raise the bar in promoting local content in the oil and gas sector, stressing that by 2027, government would increase local content in the sector from its present 10% to about 40%.
Sylva stated that it was only through such deliberate policies that Nigeria could attain full industrialisation and continue to create jobs for Nigerians.
While commending the giant strides being made by Lee Engineering and Construction Company in promoting local content in the oil and gas sector, he said the government would support the company to achieve greater heights.
“Great effort. This is the kind of story Nigeria requires. Inspiring lives that will push the aspirations and ambitions of the youths to great heights. LEE started from humble beginning and have grown a business to levels that we can only marvel at.
As government, this is the essence local content is made of, and we will stand shoulder to shoulder with LEE Engineering in their desire and quest to achieve enviable heights,” he said of the company.
In a welcome address during the tour of the facility, Executive Chairman of the company Dr Leemon Ikpea urged the Federal Government to grant import duty waiver and tax relief for indigenous fabrication companies such as Lee Engineering to enable them continue to support the government in job creation and boosting the economy.
Ikpea said Lee Engineering and other indigenous companies who have supported the government over the years, in the areas of job creation and foreign exchange earnings deserve support in the form of tax holiday and import duty waiver on imported materials for fabrication.
“We seek for waiver on import duties and tax relief for indigenous companies like Lee Engineering that are contributing immensely to the economy. Despite the adverse and devastating effect of COVID19 on business and the economy, we deliberately refused to reduce of workforce because of our commitment and support for the government,” he said.
Ikpea said Lee Engineering ventured into the multi-million dollars fabrication project in Warri “as a firm believer and champion of the federal government local content initiative to grow local capacity and develop in-country technological advancement disclosing that “when fully operational, this facility will create more employment for Nigerians, reduce cost of importation and conserve foreign exchange for the nation and improve foreign exchange earnings for our nation and eventual advanced technology transfer to the nation.”
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