Lee Group keyed into FG’s local content policy to raise grow economy—Chairman
The Chairman/Managing Director of Lee Group of Companies, Dr. Leemon Ikpea has explained the reasons behind the company’s massive investment in the Nigerian oil and gas industry.
The company is gradually becoming a leading stakeholder in the production of high pressure vessels, heat exchangers, gas-heat exchangers, water bath heaters, glycol, skits and other items that will help in the oil and gas sector.
In an interview, he said “If you look around the oil and gas sector, most production in this sector are done outside the shores of this country and if we fold our hands and wait for government’s foreign friends and partners to transfer technology to this country, I don’t see that happening, considering the market situation. If they transfer technology to you, the question to ask will be who will be buying from them? So they will be reluctant to do reveal the technology and that is why we have to start from somewhere and grow along the lines of innovations, research and training”.
Dr. Ikpea noted that his company decided to key into the local content policy of government, which was enacted into law in 2010, saying “We decided to quickly acquire a place, expand the facility to create that department and go into the production of these equipment I just mentioned to you”.
“The first move we made with our European partner, which is one of the biggest in the whole of Europe (they service the whole of Europe, America, Middle East and China markets), was to discuss the setting up of this modern facility and they keyed in immediately. They said indeed this is what Nigeria needs to help boost the oil and gas sector. This particular company I just mentioned, VDNKDI of Netherlands, we have been in partnership for the last 10 years and it’s been smooth all this while.
Continuing, Lee group boss disclosed that “So far, 50 of our technicians and engineers have been sent to the Netherlands for training. By the time the facility will be commissioned, others will be sent to the Netherlands for training in marketing of the products and the rest. All the equipment that will produce all these facilities are already in place and will be ready for commissioning between March and April 2018. We are optimistic that Mr. President will do us the honours and commission the project”.
“So far, we have invested over $100 million on this project. The land we acquired was a swampy area, we sand-filled the area and built a very massive structure; the space this facility occupies is about 4,000 square meters. By the time the facility is commissioned, you will see the value it will add to the economy of this country.
According to him, “We are going to train more Nigerians and there will be multiplier effect in the economy as those trained will also train others thus saving foreign exchange. We are also going to have a lot of suppliers who will be supplying us different equipment. This will further help to promote local content and empower small local businesses in the country”.
On the teething challenges facing the new company, Dr. Ikpea listed multiple taxation right from the host community level to the local government, state and even the federal government.
“There are the community challenges, bank challenges, power challenges and no tax holiday, among others. We are paying community taxes and the moment the community attacks you, there is no help from government to protect you. We have had to settle the community from the little we have in order to operate in a peaceful environment and things are not supposed to be like that. For example, I spend well over N50 million on diesel monthly to run my business; that is a lot of money”.
